The United Kingdom is exploring the possibility of joining the Pan-Euro-Mediterranean (PEM) convention as part of its strategy to reset relations with Europe. This move aims to enable tariff-free trade for various goods across a broad range of countries in Europe, North Africa, and the Middle East. The discussions surrounding this potential membership reflect the UK government's desire to enhance economic ties while adhering to established boundaries regarding trade agreements.
Labour Party representatives have indicated that they are open to the idea of joining the PEM convention, which could facilitate trade without fully rejoining the EU customs union. This development comes as Prime Minister Rishi Sunak's official spokesman emphasized the government's commitment to reducing trade barriers while respecting "clear red lines." These lines include concerns over free movement of people and other contentious issues that were central to Brexit negotiations.
The Liberal Democrats have taken a firm stance in favor of UK membership in the PEM convention, describing it as a "first step" towards rejoining the UK-EU customs union. The customs union allows for tariff-free movement of goods among EU member states but restricts members from pursuing independent trade deals. The party believes that entering the PEM convention would act as a catalyst for economic growth, with claims that it would provide "rocket boosters" to the UK economy and strengthen its negotiating position with global leaders, including U.S. President Donald Trump.
In a recent statement, Maros Sefcovic, the EU's new trade chief, expressed openness to Britain's potential involvement in the PEM convention as part of a broader post-Brexit reset. The discussions surrounding this potential membership highlight a crucial aspect of the UK's economic strategy, focusing on boosting trade while navigating complex political landscapes.
Kemi Badenoch, leader of the Conservative Party, has criticized the government's consideration of the PEM convention, accusing them of "trying to reopen the divisions of the past and edge us back into the EU." She underscored her party's commitment to maintaining strict boundaries regarding free movement and highlighted concerns about "backsliding" on key issues such as asylum seeker arrangements and fishing rights.
As the UK weighs its options, the Office for Budget Responsibility (OBR) has been tasked with analyzing the potential impacts of a new customs deal with the EU on the UK economy. This examination will be pivotal in determining whether joining the PEM convention aligns with government objectives and economic goals.
The Liberal Democrats have characterized joining the PEM convention as a "no-brainer" for Prime Minister Sunak, emphasizing the need for decisive action to enhance trade relations. However, Labour has ruled out any intentions to rejoin the EU customs union or single market, labeling these as red lines that cannot be crossed.