The Labour Government could be set to make a huge Brexit betrayal. (Image: Getty)
The UK could be set to join a Europe-wide trading agreement with the , the Business and Trade Secretary, has suggested.
Joining the Pan-Euro-Mediterranean Convention (PEM) would not cross Labour’s “red lines”, said Mr Reynolds, leaving the party free to make the move.
Earlier this week, , the EU’s trade chief, also said that the UK becoming a member of the PEM was “something we could consider”.
These comments have not dampened fears that the Government plans to unpick ’s deal, with making improving ties with the EU one of his top priorities.
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The UK could be set to join a Europe-wide trading agreement with the EU, suggested Jonathan Reynolds. (Image: Getty)
Downing Street previously ducked questions about entering the agreement and said the would not provide a “running commentary” on specific options for its “reset” in relations with Brussels.
However, at the in Davos, Switzerland, this week, Mr Reynolds was noticeably warmer on the subject, welcoming Mr Sefcovic’s “incredibly positive and helpful contribution.”
The PEM allows for tariff-free trade of goods across and some North African and Levantine nations. Some business groups have backed joining PEM as it would help to maintain complex supply chains.
As part of the deal, the UK already has tariff-free trade with the EU – but the PEM also includes regulations on the origin of materials used in manufacturing that would smooth disruption to supply caused by .
Any sign of the UK forming closer bonds with the bloc could also raise red flags for newly inaugurated , a long-time critic, who this week said at the WEF that while he “loves Europe”, the EU is .
Asked if he was ruling out the UK joining the PEM, Mr Reynolds told the : “That was an incredibly positive and helpful contribution from commissioner Sefcovic.
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Sir Keir Starmer promised to put the relationship on a ‘more solid, stable footing’. (Image: Getty)
“I had a conversation with him today, a bilateral meeting in the jargon here, and I thanked him for that.”
He said that he believes that the terms of trade with the EU can be improved “in a way which doesn’t revisit customs unions or single markets or the arguments of ,” while also pursuing closer trade links with the rest of the world.
“I call it the twin-track strategy, the best of everything. I think we have seen a very positive response here in Davos to that,” Mr Reynolds added.
Asked if joining the PEM would cross Labour’s red lines, Mr Reynolds said: “No it doesn’t. It is not a customs union.”
In its manifesto, Labour pledged to “reset” the UK-EU relationship, with Sir promising to put the relationship on a “more solid, stable footing”.
The , meanwhile, have accused Labour of ”.