The thirty-sixth Revised Kyoto Convention Management
Committee (RKC/MC) meeting, held at the World Customs Organization (WCO) in
April 2026 marked a watershed by officially adopting the proposed comprehensive
amendments to Specific Annex K on Rules of Origin.
This proposal was the result of a process started in 2018 by
a sizeable group of sponsoring countries, an international organization, and
private sector representatives (The Sponsoring Group of the proposal for Annex
K on rules of origin during the ongoing comprehensive review of the Revised
Kyoto Convention includes Australia, China, European Union, Japan, New Zealand,
Norway, Switzerland, the United Nations Conference on Trade and Development,
Eurasian Economic Community, Renault Nissan, Fonterra as of December 2025.)
(hereinafter the Sponsoring group) for an updated Annex K on rules of origin of
the RKC. While final implementation is still pending in accordance with RKC
procedures, the Sponsoring group has nonetheless been able to agree on a
plurilateral text on rules of origin – a remarkable achievement.
The absence of multilateral disciplines on rules of origin –
the plumbing of international trade in goods – exacerbates compliance costs in
trade transactions that are not only continuing but are increasing
exponentially in a fractured world trade.
The updated Annex K text provides leverage to resume
plurilateral cooperation to enhance transparency and predictability in an area
where consensus has proven impossible for decades within both the WCO and the
World Trade Organization (WTO).
WCO and WTO secretariats, as well as their respective
Members, should reflect on the model, dialogue, and mechanisms adopted by the
Sponsoring group to reach consensus on the updated text of Annex K on rules of
origin. This experience may offer valuable lessons on how to improve their
intergovernmental decision-making machinery.
This article outlines the content of, and the process
leading to consensus on the updated Annex K on rules of origin. It further
recommends ways and means to leverage this advance in international cooperation
as a building block towards the establishment of a plurilateral agreement
governing rules of origin and pursue further cooperation in developing
guidelines in implementing the updated Annex K.