Trade relations between the United Kingdom and the European Union have been a complex issue since Brexit.
While the UK is not seeking to rejoin the EU, efforts are being made to improve trade conditions.
The British government is now considering a proposal from the European Commission that could potentially ease some of the trade difficulties businesses have faced in recent years.
Open to the Idea
British Finance Minister Rachel Reeves stated that the government is open to reviewing the idea of the UK joining the Pan-Euro-Mediterranean Convention (PEM).
The proposal was suggested by European Trade Commissioner Maros Sefcovic, who believes it could offer trade benefits to both sides, according to El Economista.
Reeves pointed out that the current trade agreement, negotiated by former Prime Minister Boris Johnson, has created challenges for businesses, particularly smaller ones struggling with exports.
She acknowledged that the existing deal is not functioning as intended and suggested that practical solutions should be explored while maintaining the government’s current approach to trade policy.
The UK’s Labour government, under Prime Minister Keir Starmer, has ruled out rejoining the EU, the single market, or the customs union.
However, it has expressed interest in strengthening trade relations where possible. The PEM agreement, established in 2012, is designed to facilitate trade between European and North African nations.
Experts in the UK are now debating how beneficial it would be for Britain to join the arrangement.
Sefcovic, speaking at the World Economic Forum in Davos, said that discussions on the proposal are still at an early stage. He emphasized that the next steps depend on the UK’s response.
The British government has begun consulting businesses to assess how the PEM agreement could reduce bureaucracy and improve trade.
