A top Brussels bureaucrat has claimed the EU should “consider” letting the UK join a tariff-free customs scheme.
However, given Sir Keir Starmer’s red lines on the Single Market and Customs Union, the EU’s new trade chief Maros Sefcovic stresseed such an agreement would represent membership of the Pan-Euro-Mediterranean Convention (PEM).
PEM operates under common rules which enable parts, ingredients and materials for manufacturing supply chains to be sourced from across dozens of countries in Europe and North Africa tariff-free.
The suggestion, rejected by the previous Tory Governments, was touted during Sefcovic’s appearance at the World Economic Forum in Davos.
European Commission vice-president Maros Sefcovic PASefcovic said the idea has not been "precisely formulated" by London yet and the "ball is in the UK's court".
Starmer’s Government is reportedly holding consultations with business leaders over the benefits of PEM but no final decision has yet been made.
Sefcovic also hinted at a full-scale veterinary agreement to reduce frictions on farming and food trade, an updating fisheries deal and mobility plan for under 30s.
Sefcovic said it was hoped the scheme would "build bridges for the future for the European Union and the UK".
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European Union flags flying outside the European Commission in Brussels
PA Media"That was the idea," he said. "[But] we've been a little bit surprised what kind of spin it got in the UK.
"It is not freedom of movement," Sefcovic added. "We have been very clear what we've been proposing."
Despite rejecting previous calls for a return of Freedom of Movement, Starmer could face pressure next month while attending a defence and security focused EU summit.
The Prime Minister is determined to “reset” cross-Channel relations but continues to insist that this will not infringe on the UK’s decision to leave the Single Market or Customs Union.
Keir StarmerPAHousing Minister Matthew Pennycook dealt Sefcovic an almost immediate blow this morning.
Speaking to the BBC, Pennycook said: “We’re not seeking to participate in that particular arrangement.
“I think in general the Government’s been very clear … we do want a closer relationship with our European partners, both in trading terms, but also, importantly … in terms of security and defense cooperation, where we need to work far more closely. So absolutely, yes, we do want a closer relationship.
“As for this particular arrangement though we’re not seeking to participate in it at the present time.”
