EU blocks UK efforts to join European trading bloc: FT
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The news: Britian’s hopes to join the Pan-Euro-Mediterranean (PEM) convention as part of its new trade strategy have been blocked by Brussels, according to officials cited by the FT.
The context: The UK had hoped that joining PEM would help it reduce supply chain challenges brought about by Brexit, but the European Commission has reportedly told Britain that it would not support the move, frustrating London.
EU officials told the FT that the Commission decided that the UK joining PEM is not currently in the bloc’s interests as it could increase the risk of products unfairly qualifying for low-tariff access to the Union. The PEM convention is a deal between the EU nations and 20 countries across Africa and the Middle East that allows materials for manufacturing supply chains to be sourced across multiple countries to qualify for low-tariff access to markets under free trade agreements.
The UK and EU agreed to a “reset” of their relationship in May, as the two powers agreed to improve energy trading arrangements and cut checks on agrifood exports.
Brussels previously signalled that it was open to the UK joining PEM, but has since pulled back from the idea, arguing that it prefers to stick to the agreements put forward by the parties at the May summit.
The news comes as the UK and Germany are expected to ink a mutual assistance deal in the case of a threat to either nation, Politico reports, after UK PM Keir Starmer and then-Chancellor Olaf Scholz laid the groundwork for the deal last summer. Officials told Politico that the agreement is expected to be signed on 17 July.
