The European Union is considering allowing the United Kingdom to join a pan-European customs area, potentially easing trade barriers and boosting businesses.
EU Opens Door to UK Joining Pan-Europe Customs Area
The European Union’s new trade chief, Maros Sefcovic, has indicated that the bloc could consider allowing the United Kingdom to join a pan-European customs area as part of “reset” discussions between the two parties. This development comes as the EU and UK seek to improve trade relations and reduce barriers to commerce.
Pan-Euro-Mediterranean Convention: A Potential Solution for UK Businesses
The Pan-Euro-Mediterranean Convention (PEM) is a common set of rules that allows parts, ingredients, and materials for manufacturing supply chains to be sourced from across dozens of countries in Europe and North Africa to be used in tariff-free trade. Joining PEM could help the UK rejoin complex supply chains that have been disrupted by customs barriers.
While the UK government has begun consulting with businesses on the benefits of joining PEM, Housing Minister Matthew Pennycook stated that the government is “not seeking to participate in it at the present time.” However, some businesses believe that joining PEM will help reduce red tape and improve trade.
Reviewing Existing Agreements
Maros Sefcovic also suggested reviewing existing agreements between the EU and UK, including a full-scale veterinary agreement that could help reduce frictions on farm and food trade. Single market treatment for UK food and farm exports would require the UK to adopt the same rules as the EU, known as dynamic alignment.
Dame Emily Thornberry, chair of the Commons Foreign Affairs Committee, described the current agreement as “uneven and difficult,” citing issues with food inspections and customs checks.
Youth Mobility Scheme
The EU has proposed a youth mobility scheme that would allow 18 to 30 year-olds from the EU to travel, work, and study in the UK for a period, with reciprocity for young UK nationals. While Labour and the previous Tory government rejected this idea, stating that free movement within the EU had ended with Brexit, Sefcovic expressed hope that the scheme would “build bridges for the future” between the EU and UK.
Improved Relations Between EU and UK
Maros Sefcovic noted that relations between the EU and UK are “definitely” in a better place, citing improved communication and cooperation. He also acknowledged the need for caution in addressing trade with the Trump administration in Washington but expressed willingness to negotiate.
The EU-UK fisheries deal is due to expire next year, and Sefcovic emphasized the importance of finding a solution that works for both parties.
