EU commerce chief says it ‘may think about’ UK becoming a member of pan-Europe customs deal

The EU’s new commerce chief has mentioned the bloc may think about together with the UK in a pan-European commerce settlement, however emphasised that “the ball is within the UK’s court docket”.

Whereas the UK’s Labour authorities has dominated out returning to the only market and customs union after Brexit, the potential of becoming a member of a continent-wide deal may open the door to nearer cooperation with the EU and bolster much-needed financial development.

Maroš Šefčovič, who led post-Brexit negotiations for the EU, informed the BBC that permitting the UK to affix the Pan-Euro-Mediterranean Conference (PEM) was “one thing we may think about”.

The PEM is an settlement was initially agreed in 2012 and permits items to stream tariff-free throughout borders. Members embrace the EU, in addition to some north African international locations, Switzerland, Norway, Georgia and Ukraine.

Some companies have supported UK becoming a member of the PEM, saying it may assist their complicated provide chains, reduce purple tape and enhance commerce.

The UK’s meals and farming business may benefit from such a transfer. “We must have the identical guidelines and now we have to improve them on the identical time, we name it dynamic alignment,” Šefčovič mentioned, talking on the World Financial Discussion board assembly in Davos, Switzerland.

Šefčovič, who’s commissioner for commerce and financial safety, admitted that the concept had not been “exactly formulated”, however mentioned that the “ball is within the UK’s court docket”, placing stress on Keir Starmer to resolve on a place on nearer commerce ties with the bloc.

Starmer’s authorities hopes to “reset” ties with Brussels after taking energy final 12 months.

Membership of the PEM was dominated out by the earlier, Conservative authorities, however Labour ministers are reportedly beginning to seek the advice of companies on the advantages of collaborating, in line with the BBC.

Šefčovič, who took up the commerce chief place late final 12 months, mentioned UK-EU relations had been “positively” in a greater place and that his British counterpart Nick Thomas-Symonds, the minister accountable for EU relations, was “on velocity dial”.

Requested about Šefčovič’s suggestion on BBC Radio 4’s In the present day programme, the housing minister, Matthew Pennycook, mentioned the UK authorities was “not searching for to take part in that specific association”.

“Typically the federal government has been very clear … that we do need a nearer relationship with our European companions each in buying and selling phrases but in addition importantly, when it comes to safety and defence cooperation,” he mentioned.

However he added: “As for this specific association, no, we’re not searching for to take part in it this present day.”

Jonathan Reynolds, the enterprise and commerce secretary, appeared open to potential membership of the PEM, welcoming Šefčovič’s feedback. “It’s clearly not a customs union,” he mentioned in Davos. “It’s not an EU factor.”

He mentioned: “I imply Morocco, Algeria and Egypt, I believe, are all a part of it, in addition to Tunisia, Liechtenstein and Switzerland. So it’s a wider set of preparations that do assist in some sectors.”

The Labour MP Stella Creasy, who can also be the chair of the get together’s affiliated marketing campaign group, the Labour Motion for Europe, supported the potential deal. “Pink tape from Brexit hits British enterprise in some ways – becoming a member of PEM would assist reduce the paperwork linked to guidelines of origin necessities which is why now we have lengthy argued it needs to be a precedence for the UK as one method to undo the injury to commerce leaving the EU has performed,” she mentioned.

Reynolds mentioned becoming a member of the PEM wouldn’t resolve the UK automotive sector’s challenges with the present commerce and cooperation settlement.

He added: “We haven’t ever proposed ourselves that we joined … some sectors would profit, some wouldn’t. However look, what I actually welcome in that constructive tone is a recognition that we needs to be formidable”.

Earlier this month, the Lib Dem chief Ed Davey used a speech in London to say {that a} customs union with the EU could be “the only greatest factor we will do to turbocharge our economic system within the medium and long run”. He additionally argued that nearer hyperlinks with the EU in commerce and defence may assist the UK “Trump-proof” itself in opposition to the US president’s second time period.