A.I.U.F.F.A.S.S. Association Internationale des Utilisateurs de Fils de Filaments Artificiels et Synthétiques et de Soie naturelle

Unanimous vote in favour of the modernised rules of the PEM Convention

Unanimous vote in favour of the modernised rules of the PEM Convention: a real step forward for our industry.

On 7 December 2023, the PEM Joint Committee adopted the new and modernized rules of origin that aims to increase trade between the European Union and neighboring countries in the Pan-Euro-Mediterranean (PEM) region. (1)

AIUFFASS welcomes this historic achievement. Facilitating trade and investment in the "PanEuroMed" region covering 27 EU Member States and 24 partner countries is a priority region for the EU, with trade with these countries worth €677 billion in 2023. For the EU textile and clothing sector, the region accounts for 35% of its exports and 21% of its imports.

The adoption of the modernized rules of origin of the PEM Convention is a really good news for our companies, offering a homogeneous framework enabling them to benefit fully from this trade agreement. These rules determine which goods can benefit from zero customs duties. In the textile sector, for example, the "double transformation" rules have been extended to include stages such as " twisting + weaving" or "weaving + dyeing" or “weaving + coating”, which were not taken into account in the old agreements. In addition, the new rules lift the ban on duty drawback and introduce the principle of "full cumulation". The PEM Joint Committee also agreed to develop the use of electronic certification of origin in the view of further simplification of customs formalities.

After ten years of intense negotiations which EURATEX supported, the European Commission reached a full and final agreement with all PEM partners. This is a landmark achievement that will unlock the full potential of the Euro-Mediterranean area as the biggest and most integrated region of advanced manufacturing and trading of sustainable textiles and clothing. The rules adopted will accelerate the integration of T&C supply chains and boost T&C production and trade within the region, both in the East and Southern borders of the EU. In a moment when companies are looking at moving their production from Asia to nearby, like-minded and more reliable countries, it is very timely to have the PEM Convention implemented.

More information:

  • (1) The PanEuroMed contracting parties are: the EU, the EFTA States (Switzerland, Norway, Iceland and Liechtenstein), the Faroe Islands, the participants in the Barcelona Process (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the territories of West Bank and Gaza, Syria, Tunisia and Turkey), the participants in the EU’s Stabilisation and Association Process (Albania, Bosnia and Herzegovina, the Republic of North Macedonia, Montenegro, Serbia, Kosovo), the Republic of Moldova, Ukraine.
  • The text of the revised Convention can be found in the Annex to the Council Decision adopted on 25 November 2019 approving the revised text of the Convention.
  • EURATEX press release
  • More information on PEM Convention (DG TAXUD)
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