Labour has been condemned after a government minister rejected an EU offer of closer trade ties with the UK.
Maros Sefcovic, vice-president of the European Commission, told the BBC they would “consider” Britain being able to join the Pan-Euro-Mediterranean Convention (PEM).
That allows the tariff-free trade of some goods across Europe, as well as parts of north Africa.
But asked about it on Radio 4′s Today programme this morning, housing minister Matthew Pennycook said: “We’re not seeking to participate in that particular arrangement.
“I think in general the government’s been very clear … we do want a closer relationship with our European partners, both in trading terms, but also, importantly … in terms of security and defence co-operation, where we need to work far more closely. So absolutely, yes, we do want a closer relationship.
“As for this particular arrangement, though, we’re not seeking to participate in it at the present time.”
That stance was echoed in the House of Commons by Nick Thomas-Symonds, the Cabinet Office minister in charge of the UK’s post-Brexit relations with the EU.
He said: “We, of course, welcome the positive, constructive tone from Commissioner Sefcovic.
We’re 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. But we don’t currently have any plans to join PEM.”
But Lib Dem leader Ed Davey said: “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. This is an act of economic negligence.
“If the Government thinks it will get growth back in the economy by borrowing Boris Johnson’s playbook on European negotiations it is going to end up being sorely disappointed.
“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.”