GlossaryEN1 min readUpdated: Jun 26, 2026

bilateral cumulation

Bilateral cumulation comes into play when producers in two partner countries share processing steps and want to jointly meet the rules-of-origin thresholds set out in a preferential trade agreement.

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Last updated: 26 June 2026Published: 22 November 2025

Source: https://www.wto.org/english/tratop_e/markgloss_e/cumulation_e.htm

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Logistics Concept

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Definition & Explanation

Bilateral cumulation comes into play when producers in two partner countries share processing steps and want to jointly meet the rules-of-origin thresholds set out in a preferential trade agreement. It allows inputs and value added originating in one partner country to be counted together with those from the other when assessing whether a product qualifies for preferential tariff treatment. A practical example: yarn spun in Country A can be woven into fabric in Country B, with the combined processing potentially satisfying the origin requirement. Bilateral cumulation applies strictly between exactly two countries linked by a preferential agreement – distinct from diagonal cumulation, which operates across a network of partner countries, and full cumulation, which also pools individual processing operations regardless of their origin status.

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