EU relations minister Nick Thomas-Symonds has ruled out joining a pan-European trade agreement, saying the UK does not “currently have plans” to sign up to the scheme.
On Wednesday, the EU’s new trade chief Maros Sefcovic told the BBC he was open to Britain joining the Pan-Euro-Mediterranean Convention (PEM) as part of a post-Brexit “reset”.
The arrangement allows for tariff-free trade of some goods from across dozens of countries in Europe and North Africa.
At the World Economic Forum in Davos, Mr Sefcovic told the BBC’s economics editor Faisal Islam the idea had not been “precisely formulated” by London and the “ball is in the UK’s court”.
The BBC understands the UK government has begun consultations with business over the benefits of the PEM plan that could help cut red tape and improve trade. No final decision has been made yet.
Asked about the agreement in the House of Commons, Thomas-Symonds said he welcomed the “positive, constructive tone” from the EU trade commissioner.
“We are always looking for ways to reduce barriers of trade, but within our manifesto red lines, because we take a pragmatic view as to where the national interest lies.
“We don’t currently have any plans to join PEM, and we are not going to provide a running commentary on every comment that’s made.”
Labour’s manifesto said that there would be “no return to the single market, the customs union or freedom of movement”.
The minister’s comment prompted anger from the Liberal Democrat leader Sir Ed Davey, who recently called for the UK to join a new customs deal with the EU, allowing tariff- free trade between the two blocs.
It would also restrict the UK’s ability to strike trade deals with other countries.
Sir Ed accused the government of an “act of economic negligence,” adding: “It is alarming that the government is happy to negotiate with China but won’t even look at a better trading arrangement with our closest neighbours in Europe.
“It is time for a proper UK-EU customs arrangement so we can strengthen our negotiations with Donald Trump, cut the red tape on our businesses and grow the economy.”
Speaking in the Commons, Conservative shadow cabinet office minister Alex Burghart said Mr Sefcovic was “a better guide to what is going on than the British government”.
Another Conservative MP, John Cooper, said joining the Pan-Euro-Mediterranean Convention would turn the UK “once again into rule-takers and not rule-makers”.
He asked Thomas-Symonds to rule out signing up to an agreement that could see the UK “taking EU rules” and instead “strike out in the world and do new deals with America and around the Pacific-Rim”.
The minister replied that it was not a “binary choice” and the government would not “choose between allies. We look to deepen all our relationships.”
