Brussels has reportedly rejected Britain’s request to join the Pan-Euro-Mediterranean (PEM) convention, a trade initiative that provides streamlined benefits to 20 countries. This decision, according to the Financial Times, reflects growing tensions between the EU and the UK as both sides navigate the complexities of post-Brexit trade relations.
The UK, having left the EU in 2020, has sought to join the PEM convention to support its exporters. This move is seen as a practical step to address the new trade barriers introduced by Brexit, with proponents arguing that it could help reduce bureaucratic burdens and provide more flexibility for businesses. The UK government included this plan in its recent trade strategy, emphasizing its potential to simplify customs procedures and enhance trade efficiency.
However, the EU has raised concerns that allowing the UK to join the PEM convention could lead to unfair advantages for UK goods in accessing the EU market. The rejection of the UK’s bid underscores the EU’s stance on maintaining strict control over its trade agreements and rules of origin, particularly as the bloc seeks to protect its economic interests. This development marks the first visible sign of tension since the ‘reset’ in EU-UK relations, where both sides had pledged closer cooperation in areas such as energy and veterinary agreements.
Separately, the EU is demanding full compliance with the Windsor Framework, a trade agreement that addresses the unique challenges of Northern Ireland. This framework, which took effect on July 1, requires additional customs checks for goods moving between Great Britain and Northern Ireland, a situation that has been criticized by retailers as excessive bureaucracy. Despite these challenges, the UK has reaffirmed its commitment to the framework, demonstrating its ongoing engagement with PEM members, including the EU.