Business Secretary leaves door open to joining European trade area after talks with EU
Business Secretary leaves door open to joining European trade area after talks with EU
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The Business Secretary has left the open the UK participating in a tariff-free trading bloc. Jonathan Reynolds's meeting with Maros Sefcovic on Thursday followed the commissioner's suggested that Britain could join the Pan-Euro-Mediterranean Convention (PEM), promising tariff-less trade through Europe and extending into certain North African and Levantine territories.
Speaking to the BBC, Mr Reynolds expressed enthusiasm about Mr Sefcovic’s proposal, calling it "incredibly positive" and "helpful". He even alluded to the PEM as potentially fitting the UK's agenda since it "is not a customs union". His comments extended further: "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 shied away from dismissing a potential accord on agri-foods that would involve aligning with EU regulations, known as "dynamic alignment" – a move he indicated wouldn't contravene any of his Government’s hard lines against re-entangling with the EU's customs union or single market.
Labour's blueprint for 2024 has pinned down ambitions to negotiate such trading terms with the EU, while various business factions have advocated for enlisting in the PEM to alleviate disruptions in intricate supply networks. Ministers said on Thursday the Government did not “currently” have plans to join the PEM and would not “provide a running commentary”.
