The EU “Could Consider” the UK Joining a Pan-European Customs System.

The new European Union trade chief, overseeing post-Brexit talks, told the BBC that a “pan-European customs area” could be considered as part of discussions to reset UK-EU relations. Maros Sefcovic referred to the possibility of the UK joining the Pan-Euro-Mediterranean Convention (PEM), an idea supported by some UK business groups.

The PEM allows tariff-free trade using parts and ingredients from various countries, from Iceland to Turkey. The previous Conservative government opted not to pursue PEM in its post-Brexit trade deal, but businesses argue that it could help the UK re-enter complex supply chains disrupted by customs barriers. At the World Economic Forum in Davos, Sefcovic mentioned that the UK has not yet formally presented the idea, and “the ball is in the UK’s court.”

Reports indicate that the UK government has begun consulting with businesses on the potential benefits of PEM, which could streamline trade. No final decision has been made.

Sefcovic also suggested reviewing a full-scale veterinary agreement to ease farm and food trade friction. He noted that to treat UK food and farm exports like those within the EU’s single market, “dynamic alignment” would be needed, meaning simultaneous rule upgrades.

The EU-UK fisheries agreement is set to expire next year, and Sefcovic emphasized the importance of resolving fisheries issues for the EU. He also expressed surprise that the European Commission’s youth exchange offer had been misinterpreted, clarifying it as a “bridge-building proposal” rather than an initiative for freedom of movement.

Sefcovic highlighted that UK-EU relations were “definitely” improving, and he maintained close communication with UK trade counterpart Nick Thomas-Symonds. Prime Minister Sir Keir Starmer will attend an EU summit focused on defense and security next month.

Regarding trade with the US, Sefcovic emphasized the need for the EU to be “extremely cautious and responsible” in negotiations with the Trump administration but expressed willingness to engage. He acknowledged that while the EU has a surplus in goods like cars, the US has a surplus in services.