PEM enables small national auto industries to grow quickly

The Pan-Euro-Mediterranean Convention (PEM) is an agreement between the EU, European Free Trade Association, European Economic Area, countries bordering on the Mediterranean or close to it, the Faroe Islands, Ukraine, Georgia, Moldova, and countries in the former Yugoslavia. Notably, the UK is no longer part of PEM, although it was formerly a member through the EU prior to Brexit. So far, despite encouragement to join in its own right, the UK has chosen to stay outside the convention. There is a strong argument that PEM membership could go a long way to alleviating many of the UK automotive sector’s problems with rules of origin and other trade regulation issues. However, PEM’s influence on the automotive industry is much more than a potential solution to the UK’s specific problems.