Rules of origin: EU to enhance preferential trade with Pan-Euro-Mediterranean (PEM) countries

Credit: Unsplash

This article is brought to you in association with the European Commission.


The European Commission has adopted today a package of proposals that aims to increase trade between the European Union and neighbouring countries in the Pan-Euro-Mediterranean (PEM) region, thereby contributing to the economic recovery following the coronavirus outbreak. Today’s proposals will modernise the EU’s preferential trade agreements with 20 PEM trading partners by making the relevant ‘rules of origin’ in those agreements more flexible and business-friendly.

These proposals amend the EU’s bilateral agreements with the following countries: Iceland, Liechtenstein, Norway, Switzerland, Faroe Islands, Turkey, Egypt, Israel, Jordan, Lebanon, Palestine[1], Georgia, the Republic of Moldova, Ukraine, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Kosovo.

Paolo Gentiloni, Commissioner for Economy, said: “We need to do everything we can to facilitate trade and economic activity between the EU and our neighbours in the Euro-Mediterranean area, and to promote regional integration. This will also help countries like Lebanon recover and rebuild, while at the same time supporting European businesses in accessing new markets.”

‘Rules of origin’ are necessary under any trade agreement because they determine which goods can benefit from preferential treatment. The ‘origin’ is the ‘economic nationality’ of the goods traded. Origin procedures ensure that customs authorities can verify the origin of a good and allow businesses to prove the origin of their goods. When all the necessary requirements are met, goods with preferential origin are eligible to be imported with lower duty rates, or even a zero rate, depending on the preferential tariff treatment.

Today’s new rules, which are the result of ten years of negotiations, will apply alongside those of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), pending the review of the Convention, which is currently under way.

Background

This package, which is a step towards the modernisation of the PEM Convention, comprises of 21 proposals for Council Decisions that will provide for more user-friendly rules of origin in the EU’s trade agreements with most of its neighbouring countries. Trade with these countries accounted for €677 billion in 2019, which is almost half of the EU’s preferential trade. These provisions will make it easier for products to benefit from trade preferences, such as:

  • Simpler product-specific rules, such as the elimination of cumulative requirements, thresholds for local value added, more adapted to EU production needs, and new double transformation for textiles;
  • Increased thresholds of tolerance for non-originating materials, from 10% to 15%;
  • The introduction of “full” cumulation, under which the manufacturing operations needed to acquire origin for most products can be split among several countries;
  • The possibility of duty-drawback (repayment of duties on imported components) for most products to help EU exporters compete.

Rules of origin applied autonomously, as well as implementing provisions on origin are part of the EU’s customs legislation.

For more information

Memo

Text of today’s proposals

[1] this designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

No great discovery was made without a bold guess – Isaac Newton

Ocean life faces ‘onslaught of threats’ from human activity, but tools exist to save it

How technology is driving a fourth wave of environmentalism

Sweden is fighting loneliness by housing older and younger generations together

Japan must urgently address long-standing concerns over foreign bribery enforcement

EU@UNGA 74: Working towards a more peaceful, secure and prosperous world

Do men and women really have different leadership styles?

INTERVIEW: Advancing human rights, a ‘never ending process’ says new UN rights chief

How regenerative agroforestry could solve the climate crisis

How has policy affected employment in small businesses in the US?

Young people demand a transparent job market: new campaign launches on international interns day

Brexit: Is there anybody supporting a non-violent separation?

Spring 2019 Standard Eurobarometer: Europeans upbeat about the state of the European Union – best results in 5 years

Mental health in the times of coronavirus

Juncker’s Investment Plan in desperate need for trust and funds from public and private investors

Parliament gives green light to EU-Singapore trade and investment protection deals

COVID-19 will hit the developing world’s cities hardest. Here’s why

Countering illegal hate speech online – EU Code of Conduct ensures swift response

Syrian Refugees in Germany face distinctly different challenges than those in Lebanon

Somalia: UN congratulates Puntland region’s newly-elected President

Reflections on the the biggest refugee crisis since World War II

FROM THE FIELD: Hardy seeds bear fruit to protect Colombia’s environment

UN health agency welcomes Facebook pledge to stop vaccine misinformation from going viral

European Elections: “Web giants” are urging users to vote

Huge areas of the Arctic are on fire – here’s what that means for the planet

Commission presents first reflections on building a strong social Europe for just transitions

Hostilities in Syria’s southwest, mean cuts in vital aid across Jordanian border: Senior UN official

These 4 skills can make the world better after COVID-19

3 leaders on creating a pipeline for female talent in business

Commission deepens criticism on German economic policies

EU deserves the title of the Syrian affair merchandiser

Erdogan’s electoral win on a ‘me or chaos’ dilemma means trouble for everybody

This is what happens when a school swaps french fries for quinoa

Who is to pay for Trump’s trade war against China?

COVID-19: MEPs urge quick action to prevent “huge recession”

Turkey to let EU alone struggle with the migrant crisis while enhancing its economic ties with Russia instead?

Universal Health Coverage in the EU: Are we really leaving no one behind?

Topic: Mental Health in times of pandemic: What can each individual do to lessen the burden?

Antitrust: Aspen proposes 73% price reduction for six off-patent cancer medicines to remove Commission’s excessive pricing concerns

Trump declares emergency and WHO urges speed – latest coronavirus updates

It’s ‘time for concrete action’ says UN chief, welcoming inter-Korean agreement

European Commission launches global coalition for biodiversity

Coronavirus: 23 new research projects to receive €128 million in EU funding

Climate change: won or lost in cities or by cities?

Ending extreme poverty crucial to sustainable future for all: UN chief

How Japan and Singapore are reinventing old age

Simple Technology Saving Lives: Remote Auscultation

A Sting Exclusive: Towards better business opportunities for the EU and its neighbours, Commissioner Hahn live from European Business Summit 2015

UN chief welcomes South Sudan’s Unity government, lauds parties for ‘significant achievement’

Spring 2020 Economic Forecast: A deep and uneven recession, an uncertain recovery

Migration: Commission steps up emergency assistance to Spain and Greece

Nuclear test ban treaty critical to global collective security – UN chief

Protecting Health Workers’ Safety Around the World

Human traffickers in Libya are posing as UN staff, says Refugee Agency

“If the job market doesn’t exist, then even the most brilliant Youth Guarantee cannot ensure a job to these young people”, European Youth Forum Secretary General Giuseppe Porcaro on another Sting Exclusive

A new generation of women leaders is making waves in the Arab world

Do the EU policies on agro-food smell?

EU and China seize momentum to enhance trade agreements in response to Trump’s administration

Businesses succeed internationally

International Women’s Day 2019: more equality, but change is too slow

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s