The European Union is opening the door to a new stage of economic cooperation with the United Kingdom. According to the EU’s new Trade Commissioner, Maroš Šefčovič, London has the opportunity to join the Pan-Euro-Mediterranean Convention (PEM), which facilitates trade by reducing customs barriers and streamlining supply chains.
PEM already connects dozens of countries across Europe and North Africa, ensuring smooth economic integration. However, when the UK left the EU, it did not become part of this agreement, which has since created obstacles for many industries, particularly in manufacturing and supply chains.
What Will Change for Trade?
The UK government has begun consultations with businesses to assess the benefits of rejoining PEM. According to BBC, this move could significantly reduce bureaucracy and improve trade flows between the UK and the EU.
One of the key advantages of this agreement lies in customs benefits. For instance, if a British textile manufacturer wants to export clothing to the EU using fabric sourced from Turkey, it currently faces high tariffs. However, by joining PEM, the UK would regain duty-free trade with the EU in such cases, since Turkey is also a PEM participant.
Despite the promising advantages, the UK government insists that any agreements with the EU will not cross the "red lines" of national sovereignty.
If London decides to move forward, businesses can expect a significant improvement in trade conditions and a partial restoration of benefits lost after Brexit. At the same time, this could mark a major step toward stabilizing economic relations between the UK and the EU.
