On 12 October 2017, the President of Ukraine submitted to the Parliament a draft law on Ukraine’s accession to the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (“PEM Convention”).

Ukraine filed an application to join the PEM Convention a year ago. Accession to the PEM Convention will increase sales of Ukrainian goods to the EU market and transactions with other PEM Convention member states. Currently, there are 42 members of the PEM Convention, including the EU countries, Switzerland, Norway, Egypt, Israel, Turkey, Moldova, etс.

The PEM Convention lays down the provisions on the origin of goods based on the principle of “diagonal cumulation”. This system allows for raw materials or components originating from Member State A to be incorporated in products manufactured in Member State B, and then exported to member State C, without altering the originating status of these products. Diagonal cumulation only operates between the countries of the "pan-Euro-Mediterranean cumulation zone” and provided a Free Trade Agreement (FTA) is in place between all contracting parties concerned.

Ukraine will become a PEM Convention participant upon adoption of the draft law by the Parliament and deposit of this accession instrument with the PEM Convention’s depository State.

LegislationDraft Law on Accession of Ukraine to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin No 0167 of 12 October 2017.