The UK’s EU relations minister Nick Thomas-Symonds has ruled out the UK joining a pan-European customs agreement, after the EU’s trade chief suggested it as a possibility as part of the ongoing ‘reset’ of relations between the country and the bloc.
Maroš Šefčovič, the EU commissioner for trade, has suggested the UK could join the Pan-Euro-Mediterranean Convention (PEM) customs agreement, which harmonises trade rules across European and North African nations.
His remarks came at an event at this week’s World Economic Forum (WEF) meeting in Davos, Switzerland. He stated that a “pan-European [customs] area is something we could consider” in ongoing discussions around the UK government’s desire to ‘reset’ the country’s relationship with Europe.
Šefčovič added the (reset) plans were not precisely formulated by the UK government at present, and that the ball is in the UK’s court. He also indicated some support for a veterinary agreement between the UK and EU, which he says would smooth trade in affected goods – that is, sanitary and phytosanitary (SPS) goods.
The EU’s desire for a veterinary agreement may be prompted by the fact that from the end of this month, EU exporters of sanitary and phytosanitary products to the UK will be subject to the same paperwork and physical checks that UK food producers have contended with since January 1st 2021.
However, he said achieving this deal would require harmonisation of regulations on food which may pose problems for the UK in the context of other trade deals agreed since leaving the EU, notably Australia.
The remarks from Šefčovič came as the presidents of France and Germany called for European unity in light of the return of US president Donald Trump.
At an event earlier this week after becoming president, Trump highlighted his country’s trade deficit with the EU, saying that “we have a [US]$350bn deficit with the [EU]. They treat us very, very badly, so they’re going to be in for tariffs.”
Whilst the UK runs a services surplus with the USA, we buy more American goods than we export to them giving some analysts hope that the UK may avoid the tariffs Trump has talked of imposing on the EU, China, Mexico and Canada.
Industries including European steel, cars and chemicals came under discussion during Scholz’s visit to France, with both leaders stating that they viewed them as crucial to the EU’s economy – despite all three being potential targets for US tariffs.
Macron highlighted Franco-German cooperation on defence manufacturing as a particular example of European strength and said it is likely to become even more important in light of ongoing geopolitical challenges in Ukraine and the Middle East. He said it is crucial that Europe develops “its own industrial base, its own capacities, its own industry”.
Improving European defence manufacturing output may smooth relations with Trump too. The president has said that European allies are not contributing enough of their GDP to defence as part of NATO.