Jonathan Reynolds’ meeting with EU trade commissioner Maros Sefcovic in Davos came after the trade commissioner suggested Britain could join the Pan-Euro-Mediterranean Convention, which allows for tariff-free trade of goods across Europe
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”.
The Business Secretary has weighed in during a critical stage of the Government’s efforts to “reset” relations with the EU. However, Labour has drawn fire from Conservatives for being too accommodating towards the bloc.
Dame Priti Patel, the shadow foreign secretary, voiced her apprehension: “These latest reports that the Government might shackle us to the European Union are deeply concerning, and once again make clear that Keir Starmer and his chums are all too happy to put their ideology ahead of our national interest, no matter the cost.”
Meanwhile, Liberal Democrat supremo Sir Ed Davey has expressed a stark warning, suggesting that disregarding the PEM proposal would represent an “act of economic negligence”.
