Diagonal cumulation

[3] As with all preferential regimes, firms are thus able to utilise intermediate goods from countries with the same rules of origin and cumulation.

[6] Products which do not fulfil these definitions or have an unknown origin are not subject to the provisioned preferential treatment or tariffs.

Countries party to the pan-Euro-Mediterranean system are EU member states and the European Free Trade Association (EFTA) states, Turkey, members of the Union for the Mediterranean, the Western Balkans (parties to the EU's Stabilisation and Association Process; Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia) and the Faroe Islands (an autonomous territory of EU member Denmark).

Furthermore, full cumulation is in place between the European Economic Area, which includes Iceland, Liechtenstein and Norway, and Algeria, Morocco and Tunisia.

"[12] EU documents authorising Brexit talks emphasised ensuring "the protection of the Union’s financial interests and reflect the United Kingdom’s status as a non-Schengen third country that cannot have the same rights and enjoy the same benefits as a member.

[14] The pan-European system that began in 1997 allowed for cumulation to divide production into global value chains as exports are now largely of unfinished goods between production sites (66% worldwide in 2009); diagonal cumulation thus reduces the restrictiveness of RoOs as exporters take advantage of preferential access, increasing the trade volume between EU and peripheral partners.