LONDON 

The EU’s new trade chief on Thursday suggested that the UK could be included in a pan-European trade agreement, but stressed that “the ball is in the UK’s court.”

Maros Sefcovic, the EU's commissioner for trade and economic security, told the BBC that the bloc could consider allowing the UK to join the Pan-Euro-Mediterranean Convention (PEM), a trade pact that enables tariff-free movement of goods between member nations.

The agreement, originally agreed in 2012, includes the EU, Switzerland, Norway, Ukraine, Georgia, and several North African countries.

While the UK’s Labour government has ruled out rejoining the EU’s single market or customs union, some businesses have expressed support for joining the PEM, citing potential benefits such as easing supply chain complexities, reducing red tape, and improving trade.

However, speaking at the World Economic Forum in Davos, Sefcovic noted that while the proposal had not been “precisely formulated,” any further steps would depend on the UK’s willingness to engage.

“We would have to have the same rules and we have to upgrade them at the same time, we call it dynamic alignment,” he said, referring to regulatory standards within the agreement.

Despite the EU’s openness, the UK government has indicated it is not actively pursuing this option.

Housing minister Matthew Pennycook, speaking on BBC Radio 4’s Today program, stated that the UK was “not seeking to participate in that particular arrangement.”

However, he reiterated the government’s desire for a “closer relationship” with the EU, not only in trade but also in security and defense cooperation.