Clear rules of origin are vital for smooth trade. They decide where a product is considered to come from when it is made in more than one country. Recent U.S. tariffs have shown how important these rules are for exporters and importers.
The WTO definition says goods originate in the country of their last major transformation. This works in theory, but in practice countries interpret the rule differently. That creates confusion.
Certificates issued by Chambers of Commerce do not always match the interpretation in the destination country. To be safe, companies often hire local experts. This is costly and time-consuming.
A clearer system would help. Preferential trade rules already list which operations count as conferring origin, and countries keep their interpretations aligned. Extending this approach to non-preferential rules would give businesses more certainty. But reaching global agreement at the WTO seems unlikely for now.
A practical alternative could be for each country to publish its interpretation of the rules. This would give companies and authorities a clearer picture and reduce disputes. An expert panel could also check if national practices match WTO principles.
The European Shippers’ Council calls for solutions that bring clarity. Exporters, importers, and manufacturers need rules they can rely on. ESC has informed the European Commission accordingly.