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Retail

EuroCommerce: Origin Labelling Confusion Hampering SME Growth

By Steve Wynne-Jones
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EuroCommerce: Origin Labelling Confusion Hampering SME Growth

EuroCommerce, the industry body that represents the retail sector in Europe, has said that more clarity is needed about the rules relating to the origin of products, with SMEs bearing the brunt of the inconsistencies present across Europe and the rest of the world.

Speaking at a conference organised by EuroCommerce alongside sustainable trade body amfori, EuroCommerce warned that unless rules of origin for products were improved, they would continue to discourage European companies, particularly small ones, to take advantage of hard-won concessions in trade agreements.

The group said that the myriad of different rules present in the many bilateral trade agreements signed in recent years adds to what is already a confusing picture, particularly for small- to medium-sized businesses.

'Too Complicated'

“Even the most beneficial trade agreements have little effect if the rules of origin are too complicated," commented EuroCommerce director general Christian Verschueren.

"There is definitely something wrong when small companies, as well also some big enterprises, prefer to pay import duties rather than dealing with a set of different rules of origin.

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"There is an urgent need for a modernised system which recognises that we are operating in a world of global supply chains, where complex products are made up of parts from all over the world. ”

amfori President, Christian Ewert said that origin rules need to be simplified and harmonised, ideally at a global level, in order to reflect the requirements of modern global trade.

"This should include wider rules for cumulation and less stringent rules for granting preferential origin," he said.

"Without these improvements there is a definite risk that the benefits of trade agreements will continue to be only partially adopted and even a risk to the future of new trade agreements entirely.”

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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