UK Weighs Joining Pan-European Trade Convention Amid Post-Brexit Talks
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The European Union’s new trade chief, Maros Sefcovic, has suggested that Britain could consider joining the Pan-Euro-Mediterranean (PEM) Convention as part of efforts to “reset” UK-EU trade relations post-Brexit. Speaking at the World Economic Forum in Davos, Sefcovic indicated that a “pan-European customs area” could ease trade barriers and improve supply chain efficiencies.
The PEM Convention establishes common rules that allow materials and components sourced from multiple countries across Europe and North Africa to be used in manufacturing without incurring tariffs. This could provide relief to UK businesses struggling with post-Brexit customs checks and paperwork.
Despite the EU’s openness to discussions, Europe Minister Nick Thomas-Symonds told Parliament that the UK government currently has no plans to join the agreement. However, the BBC reports that consultations with businesses are underway to assess the potential benefits of PEM membership, suggesting the government is exploring its options.
UK businesses, particularly in the manufacturing sector, have voiced support for joining PEM, arguing that it would reduce costs and help re-integrate the country into complex European supply chains. William Bain, head of trade policy at the British Chambers of Commerce, emphasized that aligning trade rules with PEM would lower paperwork and regulatory burdens for UK exporters.
Under the current Brexit deal, UK goods sold to the EU must meet strict origin requirements to avoid tariffs. For instance, if British clothing manufacturers use textiles from Turkey—outside the EU—they face tariffs when exporting to the bloc. PEM membership, however, would enable tariff-free trade for such products.
Labour MP Dame Emily Thornberry criticized the Conservative-led Brexit agreement, calling it “uneven and difficult” and urged the government to leverage existing mechanisms to improve trade terms. She welcomed the EU’s constructive stance, stating that reducing barriers was essential for British businesses.
Sefcovic also hinted at potential cooperation on other trade issues, including a veterinary agreement to ease food export frictions and youth mobility initiatives, which could allow young people to work and study across the UK and EU.
Prime Minister Sir Keir Starmer is set to attend an EU summit next month to discuss defence and security, with trade relations likely to feature prominently in discussions.
Photo: The European Union’s new trade chief responsible for post-Brexit negotiations Maros Sefcovic
