EU 'could consider' UK joining pan-Europe customs area

The European Union's new trade chief, responsible for post-Brexit negotiations, told the BBC that a "pan-European [tariff] zone is something we could consider" as part of discussions to "reset" the UK-EU relationship.

Maros Sefcovic was referring to the idea, supported by some UK business groups, of the UK joining the Pan-Euro-Mediterranean Convention (PEM). PEM allows manufacturers to use parts or components from dozens of countries, from Iceland to Turkey, in tariff-free trade.

The previous Conservative government chose not to include PEM as part of its post-Brexit trade deal, but some businesses say it would help the UK rejoin complex supply chains damaged by customs barriers. Sefcovic, speaking at the World Economic Forum in Davos, said London had not "precisely formulated" the idea, and now "the ball is in the UK's court."

The UK government, according to the BBC, has begun consulting with businesses on the benefits of the PEM scheme, which could help cut red tape and improve trade. No final decision has yet been made. Sefcovic also stated that a comprehensive veterinary agreement, which could help reduce friction in agricultural and food trade, also needs to be reviewed.

The EU-UK fisheries agreement is also set to expire next year. "For the EU, a fisheries solution is very important, and we have communicated this many times." Single market treatment for UK food and agricultural exports means "we have to have the same rules, and those rules have to be upgraded at the same time, what we call dynamic alignment."

Sefcovic also expressed surprise that the European Commission's proposal on youth exchanges was "misrepresented." "This is not free movement of people. This is a proposal to build bridges," he said. "We don't want to look like demandeurs here because we believe it is good for the UK."

The trade commissioner stated that the UK-EU relationship is "absolutely" in a better place, and his UK counterpart, Nick Thomas-Symonds, is "on call." Sir Keir Starmer, the Prime Minister, is due to attend an EU summit next month focusing on defense and security.

In addition to the relationship with the UK, Sefcovic also acknowledged that the EU needs to be "extremely careful and responsible" in handling trade with a Trump administration in Washington, but expressed a willingness to negotiate. He also added that while the EU has a surplus in goods such as cars, the US has a surplus in services.