Business secretary hints UK could join European trade area

The authorities has hinted it is unfastened to joining a tariff-free trading strategy arsenic portion of its program to "reset" its narration with Europe.

Business Secretary Jonathan Reynolds suggested that joining the Pan-Euro-Mediterranean Convention (PEM) could beryllium acceptable arsenic it "is not a customs union".

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The furniture curate was speaking to the BBC pursuing a gathering connected Thursday with Maros Sefcovic, the EU's commercialized commissioner liable for post-Brexit negotiations.

Mr Sefcovic had earlier told the broadcaster the EU would see the UK joining the PEM, which allows for tariff-free commercialized of goods crossed Europe arsenic good arsenic immoderate North African and Levantine nations.

Mr Reynolds described his comments arsenic "incredibly positive" and "helpful".

He added: "We tin amended the presumption of commercialized with the EU successful a mode which doesn't revisit customs unions oregon azygous markets oregon the arguments of Brexit, and we tin bash that whilst pursuing person commercialized links astir the world."

Mr Reynolds besides declined to regularisation retired a woody connected nutrient and workplace products that would impact mirroring EU rules, known arsenic "dynamic alignment", saying this excessively didn't transverse immoderate of the government's "red lines".

Sir Keir Starmer has ruled retired a instrumentality to the customs national oregon azygous marketplace arsenic portion of his ambition for person ties with Europe pursuing the fractious post-Brexit years.

Labour's 2024 manifesto alternatively pledged to "negotiate a veterinary statement to forestall unnecessary borderline checks and assistance tackle the outgo of food". However, details of this person remained vague.

Mr Reynolds' comments spell further than Downing Street yesterday, erstwhile a spokesperson said the authorities did not "currently" person plans to articulation the PEM and would not "provide a moving commentary".

The British Chamber of Commerce (BCC) told Sky News they would enactment the move, saying their probe "indicates it would person bulk enactment among UK businesses who commercialized successful the European region".

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Head of commercialized policy, William Bain, said: "Joining would trim paperwork and costs for galore UK firms arsenic it would align rules and regulations connected some sides successful narration to the sourcing oregon components and earthy materials utilized successful exports.

"This would screen a wide scope of markets for our exporters and springiness greater flexibility crossed proviso and sourcing chains. "

He added that caller PEM rules are owed to use successful 2026, which could marque the modulation easier, and recommended a cost-benefit investigation of the woody beforehand "as the advantages volition alteration by sector".

The Lib Dems person besides been pushing for person ties with Europe, amid looming concerns implicit imaginable Trump tariffs.

Party person Sir Ed Davey, who yet wants a instrumentality to the customs union, said ruling retired the PEM connection would beryllium an "act of economical negligence".

But connected the different extremity of the governmental spectrum, the Conservatives accused Labour of "bending the knee" to the bloc.

Dame Priti Patel, the shadiness overseas secretary, said: "These latest reports that the authorities mightiness shackle america to the European Union are profoundly concerning, and erstwhile again marque wide that Keir Starmer and his chums are each excessively blessed to enactment their ideology up of our nationalist interest, nary substance the cost."