The system of Pan-Euro-Mediterranean cumulation of origin allows for the application of diagonal cumulation between the EU, EFTA States, Turkey, the countries which signed the Barcelona Declaration, the Western Balkans and the Faroe Islands. It is based on a network of Free Trade Agreements having identical origin protocols. Those origin protocols are being replaced by a reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention). A single Convention will facilitate the on-going revision of the PEM rules of origin aiming at modernising and simplifying them.
Transitional rules of origin applicable in the pan-Euro-Mediterranean (PEM) area
The EU is in the process of amending 21 origin protocols within the pan-Euro-Mediterranean (PEM) area, by implementing an alternative set of rules of origin applicable alongside with the rules of the PEM Convention, on a bilateral basis pending the adoption of the revised Convention. These new rules, which were endorsed by a large majority of PEM Contracting Parties, contain a significant number of improvements and simplifications as compared with the current PEM Convention.
The target application date of the new set of rules is 1 September 2021.
As of 1 September 2021 the new rules will become applicable, in an initial stage, between the EU and Switzerland, Norway, Iceland, Albania, Jordan, Georgia, Palestine* and Faroe Islands.
Source ec.europa.eu
