The European Union’s trade chief, Maros Sefcovic, has recently opened the door to the possibility of the United Kingdom rejoining a pan-European customs area, an idea that could significantly change the post-Brexit landscape. Speaking at the World Economic Forum in Davos, Sefcovic referred to the Pan-Euro-Mediterranean Convention (PEM) as a framework that the EU could “consider” for future discussions with the UK. The PEM allows parts, ingredients, and materials to be sourced from across Europe and North Africa to be used in manufacturing supply chains, facilitating tariff-free trade. This proposal could be a vital step in improving trade relations between the UK and the EU, particularly for businesses that have faced challenges due to Brexit-related customs barriers.
The UK government had not pursued PEM as part of its initial post-Brexit trade deal, but the idea has gained traction with some UK businesses, who argue that joining PEM could help the UK re-integrate into European supply chains that have been disrupted by new customs procedures. According to Sefcovic, the ball is now in the UK’s court, and it is up to the British government to formally propose its interest in joining the PEM. There have been reports that the UK government is already consulting with businesses to assess the potential benefits of joining this trade scheme, which could help streamline trade, reduce red tape, and alleviate some of the burdens on businesses that have struggled with new customs checks and delays since Brexit. While no final decision has been made, the prospect of the UK joining PEM could play a crucial role in reshaping the future of UK-EU trade.
In addition to the potential of PEM, Sefcovic raised the issue of reviewing the veterinary agreement between the EU and the UK, which governs trade in farm and food products. Sefcovic emphasized that for the UK to receive single market treatment for food and farm exports, there would need to be a process of dynamic alignment, meaning the UK would have to harmonize its standards with EU regulations and update them at the same time. This would help reduce friction in the movement of agricultural goods between the two regions. Sefcovic also noted that the EU-UK fisheries deal, set to expire next year, would require attention. He stressed that a solution to fisheries is essential for the EU and that the two sides should work together to ensure a fair and sustainable deal moving forward.
On another issue, Sefcovic addressed the proposal for youth mobility between the EU and the UK. The European Commission had proposed a scheme that would allow 18 to 30-year-olds from the EU to travel, work, and study in the UK for a set period, with reciprocal arrangements for young UK nationals. This idea, however, was met with resistance in the UK, where both the Labour opposition and the Conservative government rejected the concept, viewing it as a step back toward free movement. Sefcovic expressed his surprise at the reaction to the proposal, clarifying that it was not about restoring freedom of movement but about creating opportunities for young people to foster stronger connections between the EU and the UK. He added that the scheme was meant to build bridges for the future and strengthen ties between the two regions, even though it had been spun differently in the UK media.
Sefcovic also expressed optimism about the overall state of UK-EU relations, stating that they are “definitely” in a better place than before, with increased communication between the two sides. He mentioned that his British counterpart, Nick Thomas-Symonds, was “on speed dial,” reflecting the closer coordination on trade matters. Looking ahead, UK Prime Minister Sir Keir Starmer is expected to attend an EU summit next month focused on defense and security, underscoring the continued collaboration between the UK and EU on critical matters beyond trade.
Beyond the UK, Sefcovic touched on the EU’s trade relationship with the United States, acknowledging the complexities of dealing with the Trump administration. He noted that while the EU enjoys a trade surplus in goods such as cars, the US has a surplus in services, and the EU must be “extremely cautious and responsible” when negotiating with Washington. Nevertheless, Sefcovic indicated that the EU was open to negotiations and willing to engage with the Trump administration in discussions on trade. This approach underscores the EU’s desire to strike a balance between protecting its own interests and fostering cooperative relationships with global powers.
The potential for the UK to join the Pan-Euro-Mediterranean Convention and the broader discussions around post-Brexit trade indicate that the relationship between the UK and the EU is still evolving. While Brexit has undeniably created challenges, these ongoing negotiations and proposals highlight opportunities for both sides to strengthen ties and improve trade. As the UK continues to navigate its new position outside the EU, the inclusion in frameworks like PEM could help ease some of the logistical and economic burdens that have emerged in the wake of Brexit. Similarly, addressing other issues like agricultural trade, fisheries, and youth mobility could further improve UK-EU relations and provide a more stable foundation for future cooperation.
The outcome of these discussions will have a profound impact on both the UK and the EU, with businesses and individuals alike hoping for smoother trade processes and better alignment on key issues. Whether the UK will take the next steps toward joining the PEM or engaging in further regulatory alignment remains to be seen, but it is clear that the door for future negotiations is wide open. With both sides committed to finding solutions, there is potential for a more harmonious and efficient relationship in the years to come.
