The Bloc could consider the United Kingdom joining the pan-European customs area

The European Union’s new trade chief responsible for post-Brexit negotiations told the BBC that a “pan-European (customs) space is something we could consider” as part of the Kingdom’s “reset” talks -UK and EU.

Maros Sefcovic was referring to the idea, supported by some British business groups, of Britain joining the Pan-Euro-Mediterranean Convention (EMP).

The PEM allows manufacturers to use parts or ingredients from dozens of countries, from Iceland to Turkey, in tariff-free trade.

The previous Conservative government opted not to pursue the EMP as part of its post-Brexit trade deal, but some businesses say it will help Britain re-enter complex supply chains that have been hit by tariff barriers .

Speaking at the World Economic Forum in Davos, Mr Sefcovic said the idea had not yet been “precisely formulated” by London and that “the ball was in the UK’s court”.

The BBC understands that the UK government has begun consultations with businesses on the benefits of the EMP plan which could help cut red tape and improve trade. No final decision has yet been made.

Mr Sefcovic also said a large-scale veterinary agreement that would help reduce friction in agricultural and food trade would also require review.

The EU-UK fisheries deal is also due to expire next year. “A solution for fisheries is very important for the EU, and again, we have communicated this several times.”

Single market treatment for the UK’s food and agricultural exports would mean “we should have the same rules and improve them at the same time, we call that dynamic alignment”.

Mr Sefcovic also said he was surprised that the European Commission’s offer on youth exchanges had been “hijacked”. “This is not about freedom of movement. This is a proposal to build bridges.

“We don’t want to be like the claimants here, because we think it’s good for the UK,” he said.

The trade commissioner said relations between the UK and EU were “definitely” better and his British counterpart Nick Thomas-Symonds was “on speed dial”.

Prime Minister Sir Keir Starmer will attend an EU summit focused on defense and security next month.

In addition to relations with the United Kingdom, Mr Sefcovic acknowledged that the EU must be “extremely careful and responsible” in its trade relations with the Trump administration in Washington, but said he was willing to negotiate.

He added that while the EU had a surplus of goods such as cars, the US had a surplus of services.