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Wednesday, Oct 22, 2025

EU Considers UK Rejoining Pan-Euro-Mediterranean Customs Zone

EU Considers UK Rejoining Pan-Euro-Mediterranean Customs Zone

Discussions on the UK's potential integration into a pan-European customs area gain momentum amid post-Brexit adjustments.
In recent discussions surrounding post-Brexit trade arrangements, Maros Sefcovic, the new European Union trade chief, indicated that the EU might entertain the possibility of the UK joining a 'pan-European customs area'.

This remark was made during an interview with the BBC where Sefcovic highlighted ongoing 'reset' discussions between the UK and the EU. The proposition involves the UK's potential accession to the Pan-Euro-Mediterranean Convention (PEM), which is currently supported by various UK business groups.

The PEM framework facilitates manufacturers in participating countries to leverage tariff-free trade using components sourced from a wide array of countries, spanning from Iceland to Turkey.

Historically, the former Conservative government opted out of pursuing PEM in its post-Brexit trade strategy.

However, several businesses contend that rejoining PEM could be instrumental in reintegrating into complex supply chains previously hindered by customs barriers.

Speaking at the World Economic Forum in Davos, Sefcovic noted that the UK has yet to precisely articulate this proposal, underscoring that the initiative rests with British authorities.

The BBC reports that the UK government has initiated consultations with business entities to evaluate the PEM plan's potential benefits in reducing bureaucratic red tape and enhancing trade efficiency; however, no conclusive decision has been reached to date.

In addition to customs arrangements, Sefcovic mentioned the necessity to revisit a holistic veterinary agreement to alleviate farm and food trade frictions.

He elaborated that such an agreement would require the UK to align dynamically with EU regulations continuously.

The current EU-UK fisheries agreement is set to conclude in the forthcoming year, with Sefcovic expressing the EU's urgency to resolve fisheries matters, a topic communicated consistently with UK counterparts.

Sefcovic also addressed recent European Commission propositions regarding youth exchanges, clarifying that these are not a gesture towards reinstating freedom of movement but rather a measure for fostering cross-channel connections.

He expressed confidence in improved relations with the UK, noting regular communication with his British colleague, Nick Thomas-Symonds.

Looking forward, the UK's Prime Minister, Sir Keir Starmer, is scheduled to attend the EU summit focused on defense and security, slated for the upcoming month.

Beyond UK-EU relations, Sefcovic emphasized a cautionary and responsible engagement approach with the US, specifically under the ongoing Trump administration.

He expressed readiness to negotiate, highlighting the bilateral trade dynamics, with the EU holding a surplus in goods, contrasted by a US surplus in services.
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