DRAFT REPORT (2025) OF THE COMMITTEE ON RULES
OF ORIGIN
TO THE COUNCIL FOR TRADE IN GOODS
Revision
1._
This document reports on the work
conducted by the Committee on Rules of Origin (CRO) in 2025 as required by Article 6.1
of the Agreement on Rules of Origin:
"The Committee shall review annually the
implementation and operation of Parts II and III of this Agreement having
regard to its objectives" and "inform the Council for Trade in Goods of developments during the period
covered by such reviews."
2._
The CRO held two formal meetings in 2025: 3-4 April (_WTO/AIR/RO/21,
_JOB/RO/15
and _JOB/RO/15/Add.1)
and 5‑6 November (_WTO/AIR/RO/22/Rev.2
and _JOB/RO/18). The minutes of these meetings are
contained in documents _G/RO/M/84 and _G/RO/M/85[1], respectively.
3._
The formal meeting in April was chaired by Mr Guna
SEELAN BALAKRISHNAN (Malaysia), who was elected Chairperson of the CRO in June 2024.
On the sidelines of the formal meeting, an informal event celebrating the 30th
Anniversary of the CRO was also organized.[2]
In June 2025, Ms Carol TSANG (Hong Kong, China) was elected as the
Chairperson for the year 2025-2026. Ms Tsang chaired the Committee's
meeting of 5-6 November as well as an 'Information Session' on non-preferential
rules of origin.
4._
The work of the
Committee continued to be structured around two broad themes: (1) non‑preferential
rules of origin; and (2) preferential rules of origin for LDCs.
5._ On non‑preferential
rules of origin, the Committee did not hold specific discussions related to the Harmonization
Work Programme (HWP) (Article 9.2(a) of the Agreement on Rules of Origin).
Members expressed diverging views regarding the implications of harmonizing non‑preferential
rules of origin, so this area of work has not seen much development since 2007
(see the Committee's 2013 Annual Report, _G/L/1047, for further details).
6._ As a result, Members have been focusing on
improving their understanding and knowledge about national practices related to
non-preferential
rules of origin. In that context, Members attended
an 'Information Session' on non-preferential rules of origin on 6 November,
where the WTO Secretariat provided background and an overview of the Agreement
on Rules of Origin and the current status of non-preferential notifications.
Representatives from UN Trade and Development (UNCTAD) and the International
Chambers of Commerce (ICC) discussed challenges related to non‑preferential
rules of origin and provided a private sector perspective on the issue,
respectively. Speakers noted that the absence of multilaterally agreed (i.e.
harmonized) non-preferential rules of origin had left a vacuum in international
trade regulation which created uncertainty for businesses and chambers of
commerce.
7._ In addition, a new template for the
notification of non-preferential rules of origin was proposed by the
Chairperson in November 2024, for use on a trial and voluntary basis (_G/RO/103_). Since then, six Members (Hong Kong, China; Japan; New Zealand;
Switzerland; United Kingdom; and Viet Nam) have notified their
non-preferential rules of origin using the new template. On the basis of
information notified to date, the Secretariat reported
that 61 Members had informed the Secretariat that they did not apply
non-preferential rules of origin, whereas 57 Members indicated that they did.
It also noted that the number of Members applying non-preferential rules of
origin had gone from 15 (in 1995) to 57 (in 2025). The Secretariat noted,
however, that current notifications were imprecise and had gaps. For that
reason, the Chairperson encouraged Members to update their notification and,
when doing so, consider using the proposed notification template.
8._
With respect to preferential
rules of origin, the Committee continued to oversee the implementation of the Bali and the Nairobi Ministerial Decisions on preferential rules of origin for least developed
countries (LDCs) (_WT/L/917 and _WT/L/917/Add.1) as well as the April 2022 "Decision on Preferential Rules of Origin and the
Implementation of the Nairobi Ministerial Decision" (_G/RO/95). A separate report from the CRO to the
General Council on preferential rules of origin for LDCs (_G/RO/W/241/Rev.1) contains a detailed account of the
work of the CRO in this respect.
9._
Members
considered submissions concerning preferential trade agreements for LDCs, one
on preferential utilization rates (_G/RO/W/235)
and another on the expectations of LDCs from Preference-Granting Members (PGMs)
(_G/RO/W/236
and _G/RO/W/240).
In addition, the LDC Group presented a study on cumulation and shared
firm-level experiences on the issue (_RD/RO/142).
Finally, the LDC Group also proposed a possible paragraph for inclusion in the
outcome document of the 14th Ministerial Conference to be held in
Cameroon in 2026 (_JOB/RO/17).
The proposed text sought to reaffirm past ministerial decisions, acknowledge
the work done in the CRO, and instruct the Committee to intensify work on
identifying and, where possible, agreeing on the best trade‑facilitating
practices for preferential rules of origin and related administrative
requirements. Several preference-granting Members expressed concerns about the
proposed text, noting that the CRO was already engaged in discussions aimed at
improving preferential rules of origin that preference-granting members used
for LDCs.
10._
Several PGMs also
presented their preference schemes for LDCs, including changes and improvements
to these schemes to make them more useful and operational for LDCs. The
Secretariat circulated a note concerning the status of notifications of
preferential rules of origin for LDCs and preferential import data (_G/RO/W/163/Rev.14).
11._ On other or cross-cutting matters, a dedicated
discussion was held on transparency and notifications following a request of the Chairperson of the Council for Trade in Goods (CTG).[3]
Members took note that the Committee reviews notifications of 3 types: (1)
non-preferential rules of origin under Article 5 of the Agreement on Rules of
Origin; (2) preferential rules of origin applied in the context of regional or
preferential trade agreements under Annex II of the Agreement; and (3)
preferential rules of origin applied in the context of non-reciprocal
preferences for least‑developed countries under Annex II of the Agreement and
the Bali and Nairobi Ministerial Decisions. Members noted shortcomings in
current notifications, particular in relation to non‑preferential rules of
origin and discussed various suggestions to enhance transparency in the
Committee. A report on the matter was prepared for the CTG (G/RO/W/237/Rev.1).
12._
During the formal
meeting of the CRO held on 5-6 November, China and the LDC Group raised agenda
items regarding the increasingly important role of non-preferential rules of
origin and their application in the context of the current trading climate, and
called for increased transparency as well as more work to be undertaken by the
CRO and the WTO Secretariat in this area.
13._ Finally, the Committee completed the
mandated annual review of the implementation and operation of the Agreement (draft
report of the review available in document _G/RO/W/238/Rev.1).
14._
A draft of this annual report was considered by the CRO on 5-6 November 2025.
The draft was subsequently completed, amended by the Secretariat, and
circulated for consideration and adoption. In the absence of comments on that
draft, the report was adopted through written procedures on [xx] December
2025.
__________
[3] Summary by the Chair of the Informal Meeting held on 1 October
2025, WTO document _JOB/RO/16
dated 9 October 2025.