Diagonal Cumulation

FTA / RoO

Cumulation across multiple countries sharing the same rules of origin framework (e.g., PEM Convention).

Sources

1. European Commission, DG TAXUD — The Pan-Euro-Mediterranean cumulation and the PEM Convention taxation-customs.ec.europa.eu accessed 23 September 2026

Diagonal cumulation is what lets three or more partners count each other’s inputs, and the Commission is clear about the condition that makes it possible: “the application of diagonal cumulation of origin within the PEM zone is based on a network of Free Trade Agreements (FTAs), the origin protocols of which consist of identical rules of origin”. Identical protocols, not merely friendly relations. Which pairs may actually cumulate at any moment is published as a “matrix” in a Commission notice, and it changes frequently — the page carries a running log of new possibilities entering into force. The practical consequence is that diagonal cumulation is a live status to be checked against the current matrix on the date of export, not a settled feature of a trading relationship.

Whose rules these are. The pages cited are the European Commission’s, so what they state is the EU’s position and the EU’s practice. Origin criteria are set by each arrangement’s own origin protocol, and another customs territory may define the same concept differently — the Commission says as much of its non-preferential rules, which “may be different from those of a third country”. Read the protocol that governs your shipment; this entry explains the concept the protocol will use.

Related terms

• Absorption Principle
• Bilateral Cumulation
• Certificate of Origin
• Change in Tariff Classification
• Cumulation
• Direct Transport Rule

From the AJG lexicon archive (July 2026).