In a recent statement, Nick Thomas-Symonds, the UK Minister for Relations with the EU, announced that the United Kingdom has no intention of joining the Pan-Euro-Mediterranean Convention (PEM), a significant regional trade arrangement. This pronouncement comes in the wake of discussions regarding post-Brexit trading relationships. He specified that the UK “currently has no plans” to sign up for this trade scheme, despite its potential to facilitate tariff-free trade among numerous European and North African countries.
The backdrop to this declaration includes conversations held during the World Economic Forum in Davos, where Maros Sefcovic, the new trade chief of the European Union, expressed openness to the idea of Britain’s participation in the PEM. He suggested that the UK’s involvement could be part of a so-called “reset” in EU-UK relations following Brexit. In his remarks to the BBC’s economics editor, Faisal Islam, Sefcovic highlighted that the proposal had not yet been “precisely formulated” by the UK government, urging that “the ball is in the UK’s court” to take the next steps.
In light of Thomas-Symonds’s remarks, it has become apparent that the UK government is seeking alternatives while engaging in consultations with various businesses regarding the PEM’s advantages. Such discussions aim to assess how the trade deal might help reduce bureaucratic hurdles and optimize trade efficiency. However, he emphasized that a definitive decision concerning the UK’s participation has yet to be reached. Within the context of the parliamentary discourse, Thomas-Symonds praised the constructive comments from the EU trade commissioner but reiterated that any discussion surrounding participation in such agreements would remain cautious and aligned with the government’s manifesto stipulations.
The Labour Party’s manifesto clearly states a commitment to refrain from returning to the dynamics of the single market, the customs union, or initiating freedom of movement agreements. This serves as a cornerstone for their stance, ensuring that any engagements align with their established policy framework.
The response from opposition leaders, particularly Sir Ed Davey, leader of the Liberal Democrats, was sharp. He criticized the government for what he termed “economic negligence,” stressing the need for the UK to explore a new customs deal with the EU for tariff-free trading. He expressed concern that the government was willing to engage in negotiations with nations such as China yet remained hesitant to pursue improved trade arrangements with its closest neighbors in Europe. Davey called for a robust UK-EU customs arrangement to facilitate better negotiations on global trade fronts and to bolster the overall UK economy.
Within the House of Commons, some Conservative members echoed similar sentiments. Alex Burghart, a shadow cabinet office minister, remarked that Sefcovic offered clearer insights on trade than the current British government. Meanwhile, Conservative MP John Cooper expressed apprehension about PEM, stating that joining could render the UK a “rule-taker” as opposed to an independent “rule-maker.” He urged Thomas-Symonds to avoid agreements that might impose EU rules on the UK, insisting instead on pursuing new trade deals with larger economies such as the United States and those in the Pacific region.
In conclusion, whilst the UK government navigates the complexities of its post-Brexit trade landscape, the conversation surrounding joining the Pan-Euro-Mediterranean Convention remains delicate. The minister’s reinforcement of the government’s stance illustrates the tension between establishing independent trade policies and managing relations with European neighbors. As discussions continue, it will be crucial for the UK to balance its ambitions for global trade partnerships with the practicalities of existing positions on regional agreements.
