rules of origin
What drives the utilization of trade preferences? (2)
Webinar at the margins of the formal meeting of the WTO committee on rules of origin.
07/04/2022 - 13:00-15:00 CET (Geneva time)
In a webinar organized in May 2021 at the margins of the WTO Committee on Rules of Origin (CRO), speakers explored some of the factors that influence the utilization of trade preferences and the role of rules of origin and origin requirements in that context.
In one of the sessions, government officials shared their experience in calculating utilization rates and monitoring patterns of utilization to identify the factors that contribute to higher or lower utilization, including preferential rules of origin. The experiences shared were rich and highlighted the usefulness for policy makers of using the concept of preference utilization.
In fact, high levels of utilization necessarily indicate that firms are able to comply with preferential rules of origin and origin requirements and hence qualify for preferential tariff treatment. On the contrary, low utilization rates indicate that certain factors hinder firms from making full use of preferential agreements and duty saving opportunities. Such hindering factors could be related to preferential rules of origin: for instance, restrictive or complex origin criteria, difficulties related to certification of origin or strict direct shipment obligations. In addition, other factors could also influence the ability or willingness of firms to utilize preferences, such as the preferential tariff margins, awareness about preferences by businesses and economic operators, or high compliance costs. Better understanding of these factors and identifying them with precision can be a key tool in the context of export promotion strategies, policies to build the capacity of the private sector and trade facilitation reforms.
This second webinar organised by the Secretariat intended to further explore the factors that drive the utilization of trade preferences. It was an opportunity for additional Members to share their experiences in collecting preferential trade data, calculating the rates of utilization of their trade preferences, identifying more specifically the causes of low utilization and implementing measures to promote preferential trade opportunities.
This webinar was held via the Zoom platform and was open to the public. Each speaker gave a 15-minute presentation, followed by a moderated discussion with questions and comments from the participants.
Programme
OPENING (13:00 – 13:10)
Laura GAUER
Vice-Chair of the Committee on Rules of Origin 2021-2022
UNDERSTANDING THE FACTORS THAT INFLUENCE THE UTILIZATION OF TRADE PREFERENCES - A WTO CONTRIBUTION (13:10 – 13:25)
PresentationDarlan F. MARTÍ
Secretary of the Committee on Rules of Origin, Market Access Division, World Trade Organization
Thomas VERBEET
Statistician, Economic Research and Statistics Divisions, World Trade Organization
ROUND TABLE: MONITORING THE UTILIZATION OF TRADE PREFERENCES AND EXAMINING THE IMPACT OF RULES OF ORIGIN ON PREFERENCE UTILIZATION (13:25 – 15:00)
Moderator
Simon Neumueller
Economic Affairs Officer, Market Access Division, World Trade Organization
Panellists
Bruno HASSIG and Simon WÜTHRICH-BOVET
Trade Relations Division - European Free Trade Association (EFTA)
Presentation
David VLASBLOM
Trade Policy Officer, Global Affairs Canada - Canada
Presentation
Kent SHIGETOMI
Director for Multilateral Non-Tariff Barriers, Office of the U.S. Trade Representative - United States
Presentation
Ingrid GARRIDO
Assistant, Market Access Division, Subsecretaria de Relaciones Económicas Internacionales (SUBREI) - Chile
Presentation
Özlem TAYTAŞ ÖZTÜRK
Senior trade expert - Directorate General of International Agreements and EU Affairs, Ministry of Trade, Turkey
Presentation
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