In January, Marco Sefcovic, suggested that the UK as part of the negotiations to improve relations between the UK and the EU should consider joining the pan European Mediterranean convention (PEM); he also stated but the EU would consider such a proposal seriously. Sefcovic is the commissioner responsible for trade.
Mark Pennycook, the minister for housing, was asked to the same day what the government’s response was and repeated the redline mantras stating that the government had no interest in signing up to PEM. The following day he was contradicted by an anonymous government source who said that PEM would not breach Labour’s red lines. It was later stated by Reeves, that she would be happy to consider membership of PEM, although how this is part of her portfolio rather than a Cabinet Office matter I am unsure.
The PEM is an agreement on rules of origin, the effect of which is that assembled goods, using EU components do not have to pay a customs duty on the EU inputs when exporting to the EU. The Guardian have published an explainer, with two quotes, one suggesting it’ll have little effect and the other suggesting it’s an important and useful reform. It is hard to see how it will reduce paperwork and trade friction, in some cases it will reduce the sale price within the EU making British exports more competitive. It’s not a customs union.
Membership of PEM had been pushed by the LME, both at labour’s national policy forum in 2024 and they attempted to get it on the agenda of labour’s conference in 2023. The party leadership rejected these proposals and ensured the international trade with the European Union was not debated at conference. Even LME’s moderate, some might say fig leaf, pro-Europeanism seems unwelcome to Starmer’s Labour.
The Government policy consists of three proposals articulated in the Labour manifesto: a veterinary agreement, mutual recognition of qualifications and help for touring artists (& their crews and equipment). These positive proposals are underlined by three noes, no to the customs union, no to the single market and no to free movement of people.
The government also seems to be uninterested in clever hacks to the treaties and they seem to ignore the fact that the EU also has an agenda, and a stronger negotiating position and more expert negotiators. The EU will require that the UK meets all the terms of the withdrawal agreement, and there are eight disputes open at the moment. On top of this, there is the UK reluctance to talk about the EU’s proposal for a youth mobility scheme and the EU are also keen that the fishing agreement is rolled over.