Diagonal cumulation

rdf:langString Diagonal cumulation

rdf:langString Diagonal cumulation is a rules of origin (RoO) provision in international trade whereby products from one country of origin can have value added to it in another as if it were native to that country. It includes the provisions from bilateral cumulation and exists between countries with identical cumulation provisions, even if they are in separate free trade agreements (FTAs). The pan-Euro-Mediterranean cumulation system was introduced in the European Union in 1997 and allows for countries to cumulate stages of production without sacrificing their preferential access to EU markets. As with all preferential regimes, firms are thus able to utilise intermediate goods from countries with the same rules of origin and cumulation. This is understood to have fundamentally reorganised procurement strategies in peripheral countries.