EU 'could consider' UK joining pan-Europe customs area

The new EU trade chief says a new customs area could be up for discussion in reset talks later this year.

The new European Union trade chief responsible for post-Brexit negotiations has told the BBC that a "pan-European [customs] area is something we could consider" as part of "reset" discussions between the UK and EU.

Maros Sefcovic was referring to the idea, backed by some UK business groups, of Britain joining the Pan-Euro-Mediterranean Convention (PEM).

The PEM allows manufacturers to use parts or ingredients from dozens of countries, from Iceland to Turkey, in tariff-free trade.

The previous Conservative government chose not to pursue PEM as part of its post-Brexit trade deal, but some businesses say it will help Britain rejoin complex supply chains that have been hit by customs barriers.

Speaking at the World Economic Forum in Davos, Mr Sefcovic said the idea has not been "precisely formulated" by London yet and the "ball is in the UK's court".

The BBC understands that the UK government has begun consultations with business over the benefits of the PEM plan that could help cut red tape and improve trade. No final decision has been made yet.

Mr Sefcovic also said that a full-scale veterinary agreement that helped reduce frictions on farm and food trade would also require review.

The EU-UK fisheries deal is also due to expire next year. "A solution for fisheries is very important for the EU, again, we communicated this on multiple occasions".

Single market treatment for UK food and farm exports would mean "we would have to have the same rules and we have to upgrade them at the same time, we call it dynamic alignment".

Mr Sefcovic also said he was surprised that the European Commission's offer on youth exchanges had been "spun". "It's not freedom of movement. It's a bridge-building proposal.

"We do not want to look like the demanders here, because we believe this is good for the UK," he said

The trade commissioner said UK-EU relations were "definitely" in a better place and his British counterpart Nick Thomas-Symonds was "on speed dial".

Prime Minister Sir Keir Starmer will attend a defence and security focused EU summit next month.

As well as relations with the UK, Mr Sefcovic acknowledged that the EU needed to be "extremely cautious and responsible" in addressing trade with the Trump administration in Washington but said he was willing to negotiate.

He added that while the EU did have a surplus in goods such as cars, the US had a surplus in services