Information on the PEM Convention
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The PEM Convention (Regional Convention on pan-Euro-Mediterranean preferential rules of origin) sets out common rules of origin for goods under numerous free trade agreements between countries in Europe and the Mediterranean region.
The rules determine whether a product qualifies as originating goods and can therefore benefit from preferential tariff treatment, such as reduced customs duties or duty-free importation.
The PEM Convention applies to rules of origin in most free trade agreements to which Iceland is a party with countries in Europe and the Mediterranean region. The rules provide a common framework that ensures the consistent application of rules of origin among the contracting parties.
Milestone: entry into force of the revised rules
From 1 January 2026, the revised rules generally apply under the free trade agreements that have an active link to the PEM Convention. In agreements without such a link, the older rules continue to apply until the agreements have been amended or revised.
In practice, agreements will be divided according to whether or not they have an active link to the PEM Convention. This distinction affects which rules apply to accumulation and entitlement to preferential tariff treatment.