Eng
The European Commission has blocked the UK’s bid to join a pan-European trade convention designed to simplify post-Brexit supply chains, according to the Financial Times.
The UK’s latest trade strategy, published last week, proposed joining the Pan-Euro-Mediterranean (PEM) Convention to ease post-Brexit friction by simplifying rules of origin and allowing greater flexibility in sourcing components.
The Pan-Euro-Mediterranean (PEM) Convention is a framework of 25 countries and the EU, designed to harmonise and simplify rules of origin to support integrated supply chains across Europe, North Africa, and parts of the Middle East. This system gives manufacturers greater flexibility to build international supply chains without losing access to preferential trade terms.
However, according to the Financial Times, the European Commission has made clear it does not support UK accession, citing concerns that British goods could gain unfair low-tariff access to the EU market. The Commission is reluctant to go beyond what was agreed in the “common understanding” reached at the May summit.
On 19 May, the two sides signed a new trade and cooperation agreement aimed at reducing post-Brexit friction and streamlining regulatory processes. The deal introduces a permanent sanitary and phytosanitary (SPS) agreement, exemptions for UK steel exporters, and a roadmap for enhanced mobility, data sharing, and law enforcement cooperation.
Source: trans.info