Overview

• 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.