Since 1 January 2026, only one set of preferential rules of origin is applicable between the Contracting Parties of the PEM area: Either the revised Regional Agreement or the protocol that preceded it. The agreement that applies between the partner countries can be found in the regularly updated table on PEM cumulation in the Official Journal of the EU.

What is the aim of the Pan-Euro-Mediterranean Agreement?

Goods originating in the participating countries can be traded duty-free in the PEM zone under the agreement. The harmonisation of rules of origin and documentation, as well as the acquisition of preferential origin through processing and manufacturing operations in partner countries (diagonal cumulation), offer advantages over bilateral trade agreements.

Contracting Parties to the Pan-Euro-Med Convention

The PEM zone currently consists of 25 Contracting Parties:

EU, EFTA States (Iceland, Switzerland, Liechtenstein, Norway, Faroe Islands), Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestine, Syria, Tunisia, Turkey, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia, Kosovo, The Republic of Moldova, Georgia, Ukraine

Diagonal cumulation from 2026 onwards using the PEM matrix

In order to use diagonal cumulation, preferential trade agreements with identical rules of origin must be agreed between all Contracting Parties involved in the acquisition of originating status.

For example, if raw materials from Morocco are to be exported to Switzerland after processing in any EU country, the fields in Table I (PEM matrix) between the three countries to check whether the same rules of origin apply at all intersections (‘R’ for the revised Regional Agreement or ‘C’ for cumulation according to the 2012 rules). Since the EU already applies the revised Regional Agreement with Switzerland and Morocco, but the old Regional Agreement still applies between Switzerland and Morocco, the goods are not recognised as originating materials when exported to Switzerland.

The PEM matrix, which has been in force since 1 January 2026 (as of 5 January 2026, not yet published in the Official Journal of the EU), can be found here.

Approved preliminary documents under the revised Regional Agreement as proof of origin

If the Contracting Parties fulfil the requirement that a preferential trade agreement with identical rules of origin applies between all PEM countries involved in the acquisition of originating status, certain proofs of preference and supplier’s declarations can be used as supporting documents to prove origin. The German Central Customs Authority has published a list of approved types of supporting documents (in German) for this purpose.

Missing TARIC codes for ATLAS import declarations

It is currently unclear how proof of preference must be declared upon importation in order to obtain preferential treatment from 1 January 2026 onwards. The European Commission will provide the necessary TARIC codes at a later date.

Source: zoll.de (in German)