Committee on Rules of Origin - Draft report 2025 of the Committee on Rules of Origin to the Council for Trade in Goods - Revision

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.

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[1] To be issued.

[2] 30th Anniversary of the Committee on Rules of Origin, 4 April 2025, available at: https://www.wto.org/english/tratop_e/roi_e/roi_0404202510_e/roi_0404202510_e.htm.

[3] Summary by the Chair of the Informal Meeting held on 1 October 2025, WTO document _JOB/RO/16 dated 9 October 2025.