Commissioner for Trade Olivér Várhelyi, in a written answer on 3 July 2026, defended the EU's existing rules on non-preferential origin while confirming that the Commission is evaluating the Union Customs Code (UCC) rules of origin to assess their fitness for purpose. The answer responds to a question from MEP Fulvio Martusciello (PPE), who raised concerns that the 'last substantial transformation' rule allows foreign food products to be labelled 'Made in Italy' after only minimal processing in Italy, deceiving consumers and harming farmers.
Várhelyi pointed to existing consumer protection under Regulation (EU) No 1169/2011, which requires that when the origin of a processed food differs from the origin of its primary ingredient, that ingredient's origin must also be declared. He cited a 2020 Commission notice providing guidance on this provision. However, the answer offers no new legislative or enforcement measures to address the specific practice described by Martusciello.
The Commissioner confirmed that the Commission services are currently evaluating the non-preferential rules of origin in the UCC, focusing on whether they remain fit for purpose across an increasing number of policies. He stressed that the evaluation covers the application of the last substantial transformation concept, but not the concept itself, which is anchored in WTO agreements and confirmed by European Court of Justice jurisprudence. The answer thus signals a limited scope for reform: the underlying principle will not be changed, but its implementation may be adjusted.
The Commission is taking a cautious, procedural approach, prioritising existing labelling rules and a technical evaluation over a fundamental revision of origin rules. This favours legal continuity and WTO compatibility over the more aggressive consumer and producer protection sought by the questioner.
The evaluation of UCC rules of origin is ongoing, with no deadline announced. Any resulting proposals would likely be subject to ordinary legislative procedure, involving the European Parliament and Council. Stakeholders, particularly Italian agricultural producers and consumer groups, may push for faster or more substantive action, while trade partners may monitor any changes for WTO compliance.
Italian farmers and food producers would benefit from clearer origin labelling that could reduce competition from low-cost foreign products labelled as Italian, potentially improving price margins. Consumers would gain more accurate origin information, reducing deception but possibly facing higher prices for genuinely Italian products. Importers and processors using foreign raw materials could face additional labelling burdens and reduced ability to use 'Made in Italy' claims, potentially increasing costs. EU trade partners may see any tightening of origin rules as a protectionist measure, risking trade friction.