On 2 December 2017, the law on Ukraine’s accession to the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (“PEM Convention”) was published.
The PEM Convention provides for identical rules of origin allowing for diagonal cumulation between the countries of the "pan-Euro-Mediterranean cumulation zone” (provided Free Trade Agreements have been concluded between all the contracting parties concerned). This simplifies the supply chains across the zone, making it easier for exported goods to qualify for preferential free trade agreements between the various parties.
The participation of Ukraine to the PEM Convention will increase the access of Ukrainian goods to the EU markets and trades with other PEM Convention members that have contracted Free Trade Agreements (FTA). As of today, Ukraine has six Free Trade Agreements with PEM Convention members (EU, EFTA, Montenegro, Macedonia, Moldova and Georgia).
Ukraine will become a PEM Convention member upon deposit of the accession instrument with the depositary of the PEM Convention – the General Secretariat of the Council of the EU.