1. T CUSTOMS AND TRADE FACILITATION FORUM:
Rules of Origin : The Example of the Regional Convention for the Pan-Euro-Med Area
JOINT CUSTOMS AND TRADE FACILITATION FORUM:
A CUSTOMS STRATEGY FOR THE CONTINENTAL FREE TRADE AREA (CFTA)
T CUSTOMS AND TRADE FACILITATION FORUM:
Guillaume DOREY
DG TAXUD B3 Rules of origin

2. General Presentation of the rules of origin
for the pan-Euro-Med zone

3. Pan-Euro-Mediterranean free trade zone and its rules of origin
Network of bilateral free trade agreements between the EU, EFTA members, Faroe Islands, Turkey and Mediterranean countries participating in the Barcelona process (16 partners in total)
A system of pan-Euro-Mediterranean cumulation operates on the basis of identical rules of origin (PEM protocol on rules of origin) annexed to these free trade agreements
Cumulation concept: "what is mine/yours is yours/mine"
Tool of regional integration/enhanced sourcing possibilities
The Euro-Mediterranean Partnership was launched with a joint declaration of the Foreign Ministers from the European Union and Mediterranean Partners in Barcelona in November hence also called the "Barcelona Process". Its overall objective is to provide a framework for strengthened dialogue and comprehensive co-operation in the Mediterranean.
The Partners have agreed upon a strategy aiming at creating an area of peace, stability and shared prosperity through the progressive establishment of free trade between the EU and its Mediterranean partners and amongst the partners themselves by 2010.
The first step towards the creation of this free trade area is the conclusion of a full set of Euro-Mediterranean association agreements between the EU and its partners in the Mediterranean, granting reciprocal trade preferences. These agreements replace the co-operation agreements concluded in the 1970s, which implied unilateral trade preferences. The only co-operation agreement still in force is with Syria. From 1998 to date, Euro-Mediterranean association agreements with Algeria, Tunisia, Morocco, Israel, Jordan, Lebanon, the Palestinian Authority and Egypt have entered into force. The association agreement with Syria was initialled on 18 October 2004.
For more detailed information on the Barcelona Process, see the websites of DG Trade and of DG External Relations.
A system of Pan-Euro-Mediterranean cumulation of origin is being created. For this purpose the Council of the European Union on 11 October 2005 approved a Commission proposal to amend protocols on rules of origin annexed to the various agreements (IP/05/1256  ). The system will be applicable between the EC and Algeria , Egypt , Israel, Jordan , Lebanon , Morocco, Syria, Tunisia , West Bank and Gaza Strip , the EEA / EFTA countries (Iceland , Norway and Switzerland (including Liechtenstein) ),  the Faroe Islands and Turkey (including coal and steel and agricultural products). 3

4. PEM cumulation 40% max non-originating 1.000 € 4.000 € 1.000 €EU
Morocco
Turkey
4.000 €
Tunisia
1.000 € €
Russia
2.000 €

5. Turkey EU Norway Bosnia and Herzegovina Switzerland/ Lichtenstein
Montenegro
Iceland
Kosovo/UNMIK
How does PEM cumulation work?
There are FTAs linking all /some of the Members
Each bilateral FTA contains a Protocol on origin
All the Protocols on origin contain identical RoO
Every time a modification in the RoO is needed, all
the Protocols need to be adapted.
Faeroe
Albania
Morocco
Croatia
Algeria
Former Yugoslav
Rep. of Macedonia
Tunisia
Serbia
Egypt
Lebanon
Syria
Israel
Jordan
West Bank and
Gaza Strip 5

6. Matrix of PEM cumulation
01/12/12

7. replaces each Protocol
Turkey EU
Norway
Bosnia and
Herzegovina
Switzerland/
Lichtenstein
Montenegro
Iceland
Kosovo*
The PEM Convention:
A common Protocol
on RoO, which
replaces each Protocol
to each FTA
Faeroe
Albania
Morocco
Croatia
Algeria
Former Yugoslav Rep. of
Macedonia
Tunisia
Serbia
Egypt
Lebanon
Syria
West Bank and
Gaza Strip
Israel
Jordan 7

8. PEM Convention – concept and benefits
Will base diagonal cumulation of origin on a single legal instrument. No more separate protocols on RoO.
Will allow easier revision and update of RoO.
Will include entire Western Balkans region into in the pan- Euro-Mediterranean zone of diagonal cumulation.
Will allow accession of neighbouring countries in the pan- Euro-Mediterranean cumulation zone.

9. CONTRACTING PARTIES OF THE PEM CONVENTION
WESTERN BALKANS
Albania
Bosnia and Herzegovina
Croatia
Kosovo*
the former Yugoslav Republic of
Macedonia
Montenegro
Serbia
PEM system of cumulation EU
SAA
cumulation
Turkey
EFTA
Norway
Switzerland Lichtenstein
Iceland
MEDS
Algeria
Egypt
Israel
Jordan
Lebanon
Morocco
Syria
Tunisia
West Bank and Gaza Strip
Faroe Islands

10. Contact:
TAXUD, unit B3 (Rules of Origin)