AfCFTA Rules of Origin Fact Sheet (2)
Interpreting the rules | Key sector outcomes
Rules of Origin in the AfCFTA: why do they matter, and where do they apply?
Rules of Origin (RoO) are legal provisions used to determine the nationality of a product in the context of international trade. Within a preferential trade area such as the AfCFTA, the RoO specify the conditions under which a product traded between the parties to the agreement can claim local ‘economic’ origin status and therefore benefit from the preferences offered by the AfCFTA.
The AfCFTA follows a general approach to RoO that is similar to the one used in various regional (REC) trade areas, the EU EPAs, and many others. Preferences are available only to products where it can be demonstrated that they are of the economic origin of one or more State Parties* of the AfCFTA. Broadly speaking, this approach requires that products are wholly produced in an AfCFTA State, or where non-originating inputs are used, that these are substantially transformed within the AfCFTA State Party (or Parties, under the cumulation provisions).
This is the second of two AfCFTA RoO FactSheets. The first, Introduction to the AfCFTA RoO, is available here.