The WTO announced on 22 April 2016, that WTO members held their first discussions regarding implementation of the Ministerial Decision on Preferential Rules of Origin for Least Developed Countries (LDCs). The Ministerial Decision was one of the key outcomes of the WTO’s 10th Ministerial Conference in Nairobi last December.
The provisions set out under the Nairobi Decision aim to facilitate least-developed countries’ export of goods to both developed and developing countries under unilateral preferential trade arrangements in favour of LDCs. Key beneficiaries will be countries of the LDC Group, the proponent for the Nairobi Decision.
The Nairobi Decision builds on the earlier 2013 Bali Ministerial Decision on preferential rules of origin by providing more detailed directions on specific issues, such as methods for determining when a product qualifies as “made in an LDC”, and when inputs from other sources can be “cumulated” — or combined together — into the consideration of origin. The provisions also call on preference-granting members to consider simplifying documentary and procedural requirements related to origin as well as other measures to further streamline customs procedures.
At a meeting of the WTO’s committee on rules of origin, the chairman, Christian Wegener (Denmark), reminded delegations that the Nairobi Decision contains an obligation for members to inform the committee about efforts they are making to implement the decision. Members thus need to start preparing this submission.
The chairman noted that, for developed countries, a notification on implementation is due by the end of 2016, while for developing countries with preferential schemes, the notification is due when they decide to start implementing the Nairobi Decision, in line with the flexibilities set out in paragraph 4.1 of the Decision.
