The federal government has hinted it’s open to becoming a member of a tariff-free buying and selling scheme as a part of its plan to “reset” its relationship with Europe.
Enterprise Secretary Jonathan Reynolds advised that becoming a member of the Pan-Euro-Mediterranean Conference (PEM) could possibly be acceptable because it “is not a customs union”.
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The cupboard minister was chatting with the BBC following a gathering on Thursday with Maros Sefcovic, the EU’s commerce commissioner accountable for post-Brexit negotiations.
Mr Sefcovic had earlier informed the broadcaster the EU would contemplate the UK becoming a member of the PEM, which permits for tariff-free commerce of products throughout Europe in addition to some North African and Levantine nations.
Mr Reynolds described his feedback as “incredibly positive” and “helpful”.
He added: “We can improve the terms of trade with the EU in a way which doesn’t revisit customs unions or single markets or the arguments of Brexit, and we can do that whilst pursuing closer trade links around the world.”
Mr Reynolds additionally declined to rule out a deal on meals and farm merchandise that will contain mirroring EU guidelines, referred to as “dynamic alignment”, saying this too did not cross any of the federal government’s “red lines”.
Sir Keir Starmer has dominated out a return to the customs union or single market as a part of his ambition for nearer ties with Europe following the fractious post-Brexit years.
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Enterprise Secretary Jonathan Reynolds says becoming a member of the PEM could possibly be acceptable
Labour’s 2024 manifesto as a substitute pledged to “negotiate a veterinary agreement to prevent unnecessary border checks and help tackle the cost of food”. Nevertheless, particulars of this have remained obscure.
Mr Reynolds’ feedback go additional than Downing Avenue yesterday, when a spokesperson mentioned the federal government didn’t “currently” have plans to hitch the PEM and wouldn’t “provide a running commentary”.
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Head of commerce coverage, William Bain, mentioned: “Joining would reduce paperwork and costs for many UK firms as it would align rules and regulations on both sides in relation to the sourcing or components and raw materials used in exports.
“This could cowl a variety of markets for our exporters and provides larger flexibility throughout provide and sourcing chains. “
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He added that new PEM guidelines are as a result of apply in 2026, which might make the transition simpler, and really useful a cost-benefit evaluation of the deal beforehand “as the advantages will vary by sector”.
The Lib Dems have additionally been pushing for nearer ties with Europe, amid looming considerations over potential Trump tariffs.
Social gathering chief Sir Ed Davey, who in the end needs a return to the customs union, mentioned ruling out the PEM proposal could be an “act of economic negligence”.
However on the opposite finish of the political spectrum, the Conservatives accused Labour of “bending the knee” to the bloc.
Dame Priti Patel, the shadow international secretary, mentioned: “These latest reports that the government might shackle us to the European Union are deeply concerning, and once again make clear that Keir Starmer and his chums are all too happy to put their ideology ahead of our national interest, no matter the cost.”
