The revised Regional Convention on pan-Euro-Mediterranean preferential rules will enter into force on 1 January 2025. It should actually completely replace the previous rules on this date.
Two different sets of rules from 1 January 2025
Not all partner states will have ratified the new rules of origin in time for 1 January 2025. It is therefore likely that there will continue to be two different sets of rules for preferential trade in the PEM area after 1 January 2025:
- Rules of origin of the current or ‘old’ PEM Convention
- Rules of origin of the revised convention
Although the revised PEM Convention will enter into force on 1 January 2025 as planned and replace the current transitional rules, the rules of origin of the old PEM Convention will remain valid and can be applied in parallel until 31 December 2025.
Recognition of preference certificates
All preference certificates issued or made out before 1 January 2025 are to be recognised after 1 January 2025 within the scope of their validity. Goods for which a proof of preference was issued before 1 January 2025 in accordance with the alternatively applicable rules of origin should be able to be used for cumulation under the revised regional convention.
Rules from 1 January 2026
From 1 January 2026, only the rules of the revised PEM Convention and therefore only one set of rules of origin will apply in the entire PEM area. All transitional rules will then no longer apply. Contracting parties that have not included a dynamic reference to the PEM Convention in their free trade agreement by the end of 2025 would then be excluded from cumulation.
Further steps are required to maintain two parallel sets of rules in 2025, which are not expected to be implemented before mid/end December 2024. The above regulations therefore currently only represent the intention of the EU Commission.
Link:
Source