EU is 'blocking Britain's bid to join Mediterranean trade zone' despite Keir Starmer's 'reset' with Brussels
The Government recently published a trade strategy that hailed membership of the Pan-Euro-Mediterranean Convention (PEM) as an 'opportunity' for the UK.
Ministers said they would 'consider the benefits' of joining the PEM as part of efforts to boost British exports.
The PEM allows for tariff-free trade of some goods from across dozens of countries in Europe, North Africa and the Middle East.
But, according to the Financial Times, the European Commission has made clear to Britain that it would not currently support UK membership of the PEM.
EU officials said Brussels bosses had decided that the UK joining the PEM was not currently in the bloc's interests, the newspaper reported.
The EU is said to fear it would increase the risk of products unfairly qualifying for low-tariff access to the bloc.
It comes despite Sir Keir and European Commission President Ursula von der Leyen recently striking a 'reset' deal following a UK-EU summit in London.
The Government recently published a trade strategy that hailed membership of the PEM as an 'opportunity' for the UK
The agreement, signed in May, covered fishing, trade, defence and energy and represented the biggest change in Britain's relations with the bloc since Brexit.
Although the PEM is not exclusively an EU arrangement, trade experts said Britain would need EU co-operation to join because it would require a rewriting of the post-Brexit trade deal.
Sam Lowe, trade lead at consultancy Flint Global, said: 'For it to be meaningful for the UK, the EU would need to agree to incorporate the PEM rules of origin into the EU-UK Trade and Cooperation Agreement.
'This gives the EU de facto blocking powers.'
David Henig, a former UK trade negotiator now at the ECIPE think-tank, said: 'The EU isn't united on the importance of the UK reset and issues like PEM can easily be caught up in this even though technically straightforward.
'The UK Government is going to have to work hard in London and Brussels to build momentum.'
Although they have left the door open to joining the PEM, the Prime Minister has repeatedly ruled out rejoining the EU's single market or customs union.
A Government spokesperson said: 'This Government has secured a new agreement with the EU to support British businesses and jobs and put more money in people's pockets.
'We have also published a new Trade Strategy setting out how we will boost trade further.
'We aren't going to provide a running commentary on our ongoing discussions with the EU.'
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