LONDON — A U.K. minister insisted Britain is not “currently” looking to join a pan-European customs agreement as part of the government’s post-Brexit “reset” with the EU.
Housing Minister Matthew Pennycook was responding to comments made by Commission Executive Vice-President Maroš Šefčovič that a “pan-European [customs] area is something we could consider” in an interview with the BBC.
Šefčovič was referring to the idea of Britain joining the Pan-Euro-Mediterranean Convention (PEM), which establishes common terms for the rules of origin of goods to ease the flow of trade within the 25-member bloc.
When asked about the possibility of Britain joining the scheme on Radio 4’s Today Programme on Thursday during a morning broadcast round, Pennycook said: “We’re not seeking to participate in that particular arrangement.
“I think in general the government has been very clear … that we do want a closer relationship with our European partners, both in trading terms but also importantly … in terms of security and defense cooperation, where we need to work far more closely.
“So absolutely we do want a closer relationship. As for this particular arrangement, no, we are not seeking to participate in it at the present time.”
Speaking at Cabinet Office questions in parliament on Thursday morning, Brexit Minister Nick Thomas-Symonds said: “We of course welcome the positive constructive tone from Commissioner Šefčovič. We’re always looking to reduce barriers to trade but within our manifesto red lines, because we take a pragmatic view as to where the national interest lies.”
“But we don’t currently have any plans to join PEM,” the minister added.
Mixed messages
The comments — which leave some wiggle room and do not rule out the idea — come after at the government’s Trade Policy Minister Douglas Alexander on Tuesday sounded more open.
Quizzed on the possibility of re-joining PEM, Alexander said: “There are some stakeholders who would argue that there would be disadvantages to sectors of U.K. business if we were to rejoin.
“However, it is an issue that we are open to looking at, because we want to take a pragmatic view as to where the national interest lies.”
Among those strongly in favor of Britain joining the agreement is fellow Labour MP Stella Creasy, who is also chair of the Labour Movement for Europe group.
“Red tape from Brexit hits British business in many ways,” she said. “Joining PEM would help cut the paperwork connected to rules of origin requirements which is why we have long argued it should be a priority for the U.K. as one way to undo the damage to trade leaving the EU has done.”
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