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.
Old and revised PEM rules
For many years, the PEM Convention was based on rules of origin that entered into force in 2012. Revised and more modernized rules of origin were adopted in December 2023.
The revised rules generally provide simpler and more flexible origin requirements than the previous rules. Their purpose is to make it easier for businesses to meet origin requirements and benefit from preferential tariff treatment under free trade agreements.
A transitional period applied until 31 December 2025. During that period, certain free trade agreements allowed either the old or the revised rules to be applied, depending on what was permitted under the relevant agreement.