note on analysis of the utilization rate of the united kingdom preferences

submission of the least developed countries

The following submission, dated 17 April 2024, is being circulated at the request of the delegation of Togo on behalf of the LDC Group.

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1  INTRODUCTION

1.1.  This submission on the utilization rates of the UK DCTS marks another step forward by the LDC WTO group to generate the expected discussions in the CRO to meet the objectives mentioned in section 7 the report to the General Council on preferential rules of origin for Least Developed Countries^[1] (Hereinafter "the Report") named "conclusion and next steps". In particular, 7.2 and 7.3 reproduced below:

"7.2. In addition to the above and in conformity with the Decision of the Committee on Rules of Origin on preferential rules of origin adopted on 14 April 2022, Members will continue and, to the extent possible, intensify their work on identifying and where possible, agreeing on best practices on preferential rules of origin and related administrative requirements.

7.3. On the basis of the above, Members consider that in light of the divergent views of Members on the implementation of the Bali and Nairobi Decisions and best practices in this regard, it is necessary to continue relevant discussions in the Committee on Rules of Origin as well as intensify bilateral engagement…"

1.2.  A preliminary analysis of the UK DCTS made by the LDCs Group (_G/RO/W/216) revealed a series of notable advancements, particularly in addressing requests from WTO Least Developed Countries (LDCs).

1.3.  The present submission is an initial analysis of the utilization rates of the UK DCTS. It is important to assess the evolution of the utilization rates and trade volumes of the UK DCTS as it marks the passage from the first set of rules of origin based on EU rules of origin to the new rules of origin under the UK DCTS that entered into force on 19 June 2023.

1.4.  While it may be too early to check the impact of the new set of rules of origin under the UK DCTS this submission may be useful as future marker of successive assessments.