Alex Trelinski
UK chancellor Rachel Reeves has said that she is happy for Britain to look at joining a new European tariff-free trade zone.
Reeves told broadcasters on Sunday that joining the Pan-Euro-Mediterranean Convention (PEM), would not break the Labour government’s policy about signing up to the EU customs union or single market.
Since the government came to power last July, it has made it clear that it wanted closer economic co-operation with the EU.
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The EU trade commissioner Maros Sefcovic has suggested that the UK could join the PEM, which allows for tariff-free trade of goods across Europe, as well as some parts of North African and the Eastern Mediterranean.
Last week Business Secretary Jonathan Reynolds met with Sefcovic at the World Economic Forum in Davos.
Reynolds said that Sefcovic’s comments were ‘incredibly positive’ and ‘helpful’.
He also suggested Britain joining the PEM could be acceptable as it ‘is not a customs union’.
Speaking to Sky News on Sunday, Rachel Reeves said: ‘It was really interesting to see Maros Sefcovic this week suggest the UK might be welcome in that pan-European and Mediterranean customs framework”.
‘”We are absolutely happy to look at these different proposals because we know that the deal that the previous government secured is not working well enough.”
”It’s not working well enough for small businesses trying to export, it’s not working well enough for larger businesses either.”
“We’re grown-ups who admit that, whereas the previous government said there were no problems at all.”
“And where there are constructive ideas we are happy to look at those, as long as they’re consistent with the red lines we set out in our manifesto.”
