Key facts
- The European Commission has blocked the UK's attempt to join the Pan-Euro-Mediterranean convention.
- The UK had considered joining the convention to ease post-Brexit supply chain issues for exporters.
- The EU stated that the UK's participation in the PEM convention is not currently in its interests.
- This blockage represents the first friction since the EU and UK announced a relationship reset.
- A summit to discuss EU-UK relations is scheduled for July 22.
The European Commission has blocked the UK's attempt to join the Pan-Euro-Mediterranean (PEM) convention, a move that would have potentially reduced post-Brexit supply chain challenges for UK goods exporters. Officials on both sides confirmed the blockage, which has reportedly frustrated London.
The UK had announced it was considering joining the convention as part of its new trade strategy, arguing it could help boost flagging goods exports by reducing complex paperwork and increasing flexibility for sourcing inputs. The PEM convention is an agreement between the EU and 20 other countries in Africa and the Middle East that allows inputs for manufacturing supply chains to be sourced across multiple countries to qualify for low-tariff access to markets under free trade agreements.
However, EU officials indicated that the commission decided the UK joining PEM was not currently in the EU's interests, as it would increase the risk of products unfairly qualifying for low-tariff access to the bloc. This decision marks the first sign of friction between the UK and the EU since the two sides announced a "reset" of their relationship at a summit on May 18th, promising to improve energy trading arrangements and sign a veterinary agreement to remove checks on agri-food exports.
Separately, the EU and UK have announced their next summit to discuss the "reset" in relations will be held in Brussels on July 22. The summit was delayed several times, with talks over a youth mobility scheme for those under 30 deadlocked. António Costa, president of the European Council, confirmed the date, stating that close EU-UK cooperation is essential. UK Prime Minister Keir Starmer expressed his government's commitment to resetting the relationship and tackling issues like the cost of living and job creation. While Starmer has ruled out rejoining the EU single market or customs union, industry groups have pushed for measures like joining the PEM convention as an interim step.