London (Brussels Morning Newspaper) – The UK Government is not planning to join a pan-European trade agreement proposed by an EU official, Maros Sefcovic, UK minister said.
Minister of State for Housing and Planning Matthew Pennycook stated the Government was “not seeking” to participate in the Pan-Euro-Mediterranean Convention (PEM). Questioned if the UK could join the PEM, housing minister Mr Pennycook stated:
“We’re not seeking to participate in that particular arrangement.”
The minister told BBC:
“I think in general the Government’s been very clear… that we do want a closer relationship with our European partners, both in trading terms but also, importantly – and this speaks to your previous segment – in terms of security and defence co-operation, where we need to work far more closely.
“So absolutely, yes, we do want a closer relationship. As for this particular arrangement: no, we’re not seeking to participate in it at the present time.”
How did EU official Maros Sefcovic propose the UK joining agreement?
Executive Vice-President of the European Commission for the European Green Deal Maros Sefcovic, the diplomat who oversaw post-Brexit negotiations for the EU, had informed the BBC that the United Kingdom joining the PEM is
“something we could consider.”
Talking to the BBC at the World Economic Forum in Davos, Switzerland, Mr. Sefcovic stated the vision had not been “precisely formulated,” and the “ball is in the UK’s court.”
He said that the EU was willing to contemplate this step, which would pave the way for tariff-free trade across Europe and include some North African and Levantine countries. At the same time, Šefcovic showed an interest in revisiting a whole veterinary agreement between the EU and the UK, which would be pivotal in allowing both regions to freely trade agricultural and foodstuffs.
What is the significance of PEM?
The Pan-Euro-Mediterranean Convention is a regional agreement to harmonize the preferential rules of origin of the participating countries in an effort to expand trade and boost economic integration between the Euro-Mediterranean region.
The design of the PEM Convention has taken a diagonal cumulation approach to harmonization among its participants, such that goods from a participant may be eligible to obtain originating status by satisfying any combination of cumulation from several convention participants upon the exchange between such participants. This system helps smoothen the trade and further supports the integration of supply chains across the region.
