 "UK minister clarifies Starmer govt not seeking to join pan-Europe trade pact")
The United Kingdom is not currently seeking to join a pan-European customs agreement, a government minister clarified Thursday (January 23), amid ongoing discussions about post-Brexit trade relations with the European Union (EU).
Housing Minister Matthew Pennycook, addressing comments made by European Commission Executive Vice-President Maroš Šefčovič, said that Britain has no plans to join the Pan-Euro-Mediterranean Convention.
The Pan-Euro-Mediterranean Convention
Launched in 2012, this convention aims to make it easier for 25 countries–mostly in Europe and north Africa– to trade with each other by implementing standard rules.
Signatories include the EU, Norway, Switzerland, Turkey, six Western Balkan countries, Ukraine, Morocco, Syria, and Palestine. The UK is one of the few European nations that have not signed up.
The Pan-Euro-Mediterranean Convention would help UK’s trade. The Guardian quoted David Henig, a former UK trade official who presently works at the European Centre for International Political Economy thinktank, as saying that PEM would make a difference to any manufacturing sector with broad supply chains since it would greatly ease sourcing materials from different parts of the region.
Mixed messages
“We’re not seeking to participate in that particular arrangement,” Pennycook said in an interview with BBC Radio 4. While reiterating the government’s commitment to fostering closer ties with European partners, he stated, “As for this particular arrangement, no, we are not seeking to participate in it at the present time.”
Šefčovič had raised the possibility of Britain joining the customs area during a BBC interview, calling it a concept worth considering.
In parliament, Brexit Minister Nick Thomas-Symonds echoed Pennycook’s remarks, saying, “We of course welcome the positive constructive tone from Commissioner Šefčovič. We’re always looking to reduce barriers to trade but within our manifesto red lines,” he said. “But we don’t currently have any plans to join PEM.”
The government’s position appears to leave some flexibility. Earlier this week, Trade Policy Minister Douglas Alexander sounded more open to the idea, acknowledging the potential benefits while noting that any decision would prioritise national interests.
Impact Shorts
More Shorts“There are some stakeholders who would argue that there would be disadvantages to sectors of U.K. business if we were to rejoin[…]However, it is an issue that we are open to looking at,” Alexander had said earlier this week.
Labour MP Stella Creasy, chair of the Labour Movement for Europe group, called for stronger consideration of joining PEM, arguing it could reduce post-Brexit trade barriers. “Red tape from Brexit hits British business in many ways,” she said. “Joining PEM would help cut the paperwork connected to rules of origin requirements.”
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