Rules of origin of the revised PEM Convention

The revised PEM Convention has entered into force on 1 January 2025and automatically applied to all free trade agreements (FTA) that contain a so-called ‘dynamic reference’ to the PEM Convention.

An image displays the Euro-Med countries with their flags on a blue background. It is divided into two groups: EFTA and Pan-Euro.

At the same time, the old rules of origin could be applied alternatively during a transitional period from 1 January 2025 to 31 December 2025. From 1 January 2026, only the rules of origin of the revised PEM Convention will apply if an FTA contains a dynamic reference to the PEM Agreement. Diagonal cumulation applies without restriction (Chapters 1-97). This applies to the following FTAs of Switzerland / EFTA:

  • Switzerland – EU (1.1.2026)
  • EFTA Convention (1.1.2026)
  • EFTA - Albania (1.1.2026)
  • EFTA - Bosnia and Herzegovina (1.1.2026)
  • EFTA - Georgia (1.1.2026)
  • EFTA - Jordan (1.2.2026)
  • EFTA - Moldova (1.1.2026)
  • EFTA - Montenegro (1.1.2026)
  • EFTA - North Macedonia (1.1.2026)
  • EFTA - Serbia (1.1.2026)
  • EFTA - Türkiye (1.1.2026)

For FTAs without a dynamic reference to the PEM Convention, only the old rules of origin in accordance with the relevant origin protocols will continue to apply. This applies to the following FTAs of Switzerland / EFTA:

  • Switzerland - Faroe Islands
  • EFTA - Egypt
  • EFTA - Israel
  • EFTA - Lebanon
  • EFTA - Morocco
  • EFTA - Palestine
  • EFTA - Tunisia
  • EFTA - Ukraina

This means that from 1 January 2026, there will be two cumulation zones in which diagonal cumulation will only be possible under the rules of origin of either the old or the revised PEM Convention. Diagonal cumulation with input materials from the other zone will no longer be possible.

Further information on the adoption of the revised PEM Convention and the transitional provisions can be found here and in the document Section in German, French or Italian.