The European Union’s new trade chief responsible for post-Brexit negotiations has told the BBC that a “pan-European customs area is something we could consider” as part of “reset” discussions between the UK and EU.
Maros Sefcovic referred to the idea of Britain joining the Pan-Euro-Mediterranean Convention (PEM). These are common rules that allow 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.
But Housing Minister Matthew Pennycook told the BBC the government was “not seeking to participate in it at the present time”.
However, the BBC understands the UK government has begun consultations with business over the benefits of the PEM plan that could help cut red tape and improve trade. No final decision has been made yet.
The Conservatives did not pursue PEM as part of its post-Brexit deal, but some businesses have said it will help the UK rejoin complex supply chains that have been hit by customs barriers.
Speaking at the World Economic Forum in Davos, Mr Sefcovic said the idea has not been “precisely formulated” by London yet and the “ball is in the UK’s court”.
Dame Emily Thornberry, chair of the Commons Foreign Affairs Committee, said the post-Brexit agreement negotiated by the Tories had “all kinds of holes” in it.
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