Background:
UNCTAD has traditionally supported the Least Developed Countries (LDCs) in WTO negotiations by providing technical assistance on DFQF, rules of origin and services waiver. In particular, UNCTAD assisted the WTO group on the elaboration of three proposals on rules of origin circulated by the respective LDCs coordinator in 2006 (Zambia) 2011 (Bangladesh) 2013 (Nepal) as well as a draft Ministerial decision on the road to Bali. In the post Bali scenario 2014, UNCTAD provided assistance through workshops, training, and the elaboration of papers on the LDC challenges in complying with rules of origin for discussions towards the WTO Ministerial Conference in Nairobi. After the Bali Decision, the continuation of the intensive work led to a second major outcome, that is, the Nairobi Ministerial Decision on preferential rules of origin requesting Preference Granting Members to notify both, their RoO and utilization rates to the WTO.
Description:
In October 2017, UNCTAD organised an Executive Training on Rules of Origin (RoO) for LDCs to enhance skills and knowledge of official from LDCs -both Geneva and Capital-based- on analysing and negotiating preferential rules of origin based on the notifications by preference granting members. This activity constituted an intense preparation for the Committee on Rules of Origin (CRO) of 4 October 2017 during which LDCs representatives took the floor to advocate their interests, discuss the developments of preference-giving countries on implementing the Nairobi Ministerial Decision on preferential rules of origin and expectations and strategies to be adopted and clarified for the next WTO Ministerial Conference (MC 11) in Buenos Aires.
1. Developments Regarding Methods Of Calculation Of The Percentage Criterion (Paragraph 1.1 Of The Nairobi Decision);
2. Developments Regarding Methods Using A Change Of Tariff Classification Criterion To Determine Substantial Transformation (Paragraph 1.2 Of The Nairobi Decision);
3. Developments Regarding Methods Using A Specific Manufacturing Or Processing Operation Criterion To Determine Substantial Transformation (Paragraph 1.3 Of The Nairobi Decision);
4. Developments Regarding Methods Using A Combination Of Requirements To Determine Substantial Transformation (Paragraphs 1.4 And 1.5 Of The Nairobi Decision);
5. Developments Regarding Cumulation Provisions (Paragraphs 2.1 And 2.2 Of The Nairobi Decision);
6. Developments Regarding Documentary Requirements (Paragraph 3 Of The Nairobi Decision);
7. Utilization Rates Under Preferential Trade Arrangements For Least Developed Countries.
Outcome:
At the CRO of 4th October 2017, members did not raise any objection against the analysis made by the LDCs regarding the developments (or its lack thereof) on implementing the Nairobi Ministerial Decision on preferential RoO and agreed with the mandate to continue working on the implementation of preferential RoO as of the Nairobi Ministerial Decision.
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