What is the Pan-Euro-Mediterranean (PEM) agreement?
The Pan-Euro-Mediterranean (PEM) convention aims to increase trade between the European Union and other countries who are entered into the PEM partnership by making the rules of origin more flexible and business-friendly.
The idea for this partnership between Pan-Euro-Mediterranean countries began as the Barcelona Process in 1995, and has been expanded on over time as more territories have joined the initiative. Finally, the partnership approved the created of a single convention on 21st October 2007.
The list of non-EU countries involved is as follows:
Albania, Algeria, Bosnia and Herzegovina, Croatia, Egypt, Faroe Islands, Georgia, Iceland, Israel, Jordan, Kosovo, Lebanon, Liechtenstein, North Macedonia, Norway, The Republic of Moldova, Montenegro, Morocco, Palestine (regardless of state), Serbia, Switzerland, Tunisia, Turkey, Ukraine.
Until a single convention can be applied to all parties involved, transitional rules have been agreed and phased in between different countries.
Note that these transitional rules of origin do not only apply for trade between non-EU countries and the EU, but also with other countries within the Pan-Euro-Mediterranean (PEM) agreement.
Which countries have expanded the PEM agreement as of 1st February 2023?
From 1st February 2023, the following countries will apply diagonal application of the Pan-Euro-Mediterranean (PEM) agreement with each other:
Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Moldova, Montenegro, and Serbia.
There are no updates to PEM agreements for the European Union in February 2023.
Which Pan-Euro-Mediterranean (PEM) countries have agreed transitional rules with the European Union?
Due to the complexity of aligning rules of origin for over 20 countries, the Pan-Euro-Mediterranean (PEM) initiative is being phased in as agreements are made.
Bosnia and Herzegovina have not agreed transitional rules of origin with the European Union. However, agreements have been made with the other PEM members on the following dates:
Since 1st September 2021
Switzerland, Iceland, Norway, Greenland, Jordan, Palestine, Albania, Georgia
Since 9th September 2021
North Macedonia
Since 16th November 2021
Moldova
Since 6th December 2021
Serbia
Since 9th February 2022
Montenegro
Since 15th October 2022
Kosovo
Is the United Kingdom involved in the Pan-Euro-Mediterranean (PEM) agreement?
Since leaving the European Union, Britain has created its own trade agreements with countries worldwide, such as the Developing Countries Trading Scheme. Following review of the Pan-Euro-Mediterranean (PEM) by the UK Government, the decision was made not to participate.
However, goods moving to Northern Ireland will still be covered by the PEM in association with the Republic of Ireland, as part of the Northern Ireland Protocol.
Are your shipments affected by transitional Pan-Euro-Mediterranean (PEM) rules for origin?
Customs Support’s consultants are here for you. Facilitating import and export declarations across 12 countries throughout Europe, and supported by our customs consultants, we help businesses like yours navigate the global customs landscape.
If you need help with transitional Pan-Euro-Mediterranean (PEM) rules for origin, contact us for more information on how we can help you today.