Rachel Reeves Signals Openness to Joining Pan-Euro-Mediterranean Trade Agreement

The Chancellor expressed willingness to consider the EU-backed customs framework, emphasizing alignment with Labour's manifesto red lines.

Chancellor Rachel Reeves stated the UK is open to exploring membership in the Pan-Euro-Mediterranean Convention (PEM), a tariff-free trade framework involving Europe and select North African nations.
Reeves emphasized that any decision would adhere to Labour's manifesto commitments, which rule out rejoining the EU's single market or customs union.
The PEM facilitates simplified trade rules for its 25 member countries, with Reeves citing potential benefits for UK businesses struggling under the current trade deal.
Critics, including Eurosceptics and opposition figures, argue that joining the PEM could undermine Brexit and alienate pro-Brexit voters in key regions.
The announcement follows EU Trade Commissioner Maroš Šefčovič's indication that the UK would be welcome in the PEM, but Reeves stressed the decision would prioritize economic growth and national interests.