Could Britain really join a European customs union?

Europe's new trade official responsible for post-Brexit negotiations has said a "pan-European [customs] area" is something the EU could consider as part of "resetting" relations between the UK post-Brexit and the EU.

- MARY DEJEVSKY

But how feasible would this be?

What would a pan-European customs area look like?

One exists at present in the form of the Pan-Euro Mediterranean Convention (PEM). It has a very wide membership from EU and non-EU states in Europe, including aspiring EU members in the Balkans and the likes of Georgia, Moldova and Ukraine. It also comprises north African and Middle Eastern countries bordering the Mediterranean, including Lebanon, Israel, Turkey, Syria, Egypt, and Morocco.

Its rules allow members to source parts and ingredients for manufacturing from one another and to trade between themselves without tariffs.

How would it differ from current UK-EU trade arrangements?

Under post-Brexit arrangements, UK-manufactured goods sold into the EU are not subject to tariffs so long as they are made with a stipulated percentage of materials sourced from the UK or the EU. Otherwise, goods are subject to tariffs. However, if the UK joined the PEM, goods made with components or textiles from, for instance, Turkey (a big supplier of textiles and food) would no longer be subject to those tariffs.