The European Union's trade chief, Maros Sefcovic, has suggested that Britain could consider joining the Pan-Euro-Mediterranean Convention (PEM) as part of ongoing efforts to reset trade relations post-Brexit. The proposal would allow UK manufacturers to source materials from PEM member countries, including Turkey and North African nations, for tariff-free trade with the EU. This arrangement could ease supply chain disruptions and reduce costs for British businesses, but the UK government has yet to make a final decision.

While Downing Street insists that any agreement would not cross its "red lines" on Brexit, consultations with businesses have begun to assess the potential benefits of joining PEM. Critics argue that the current trade deal leaves UK companies at a disadvantage, particularly in sectors such as textiles, where tariffs apply to goods made with materials sourced outside the EU. Labour’s Dame Emily Thornberry has called for the UK to seize opportunities to improve the agreement, saying barriers to trade with the EU remain a significant issue.

Discussions have also extended to other trade areas, including food and agriculture. Sefcovic has called for a review of the veterinary agreement to reduce frictions on food exports, though this would require dynamic alignment of regulations. Meanwhile, proposals for a youth mobility scheme aimed at fostering stronger cultural ties have faced scepticism in the UK, despite assurances that it would not involve freedom of movement.

Amid these ongoing negotiations, relations between the UK and EU have improved, with both sides expressing a willingness to explore practical solutions. Prime Minister Sir Keir Starmer is set to attend a European summit next month, marking a continuation of efforts to strengthen cooperation on key issues, including defence and trade.