European Union: UK Membership

Ben Coleman Excerpts

Monday 24th March 2025 Westminster Hall

[Sean Woodcock (Banbury) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I thank my hon. Friend the Member for Colne Valley (Paul Davies) for opening the debate on behalf of the Petitions Committee.

Banbury has a proud history as a hub for industry and manufacturing, from the aluminium works, which were crucial to the construction of aircraft during world war two, and which my grandfather later worked at, to the automotive supply chains, green tech start-ups and Formula 1 teams that call my constituency home today. Those companies and many others rely on smooth, efficient trade with the European Union.

The psychodrama of the final eight years of the last Conservative Government culminated in a botched Brexit deal that put up barriers to trade, soured relations with our closest allies and ultimately left our constituents out of pocket, so I welcome the reset in relations between the United Kingdom and the European Union that has taken place since the general election. We have a real opportunity to forge a new, more constructive relationship with our European friends.

Hundreds of constituents have written to me, signed petitions—including this one—and spoken to me on the doorstep about the damage that Brexit has caused. I have also had the privilege of hearing from and meeting business owners across Banbury who once enjoyed seamless access to European markets but now feel buried under the very paperwork and bureaucracy that Brexiteers once promised to eliminate.

Take, for example, Electric Assisted Vehicles Ltd, an exciting Banbury-based company manufacturing electric-assisted bikes. Those bikes represent the future of urban green transport, a sector in which the UK could be leading. However, instead of expanding easily across Europe, as EAV once could, it now faces an avalanche of paperwork. It has told me that what was once a single-page document is now 20 pages. That is a clear and direct demonstration of the previous Government’s failure to deliver a Brexit deal that works for British business.

Consider the BMW plant down the road in Oxford, a cornerstone of the UK automotive industry. When I spoke to workers alongside my right hon. Friend the Member for Oxford East (Anneliese Dodds) a few weeks ago, it became clear that Brexit was a key factor in BMW shifting production away from the UK and towards the EU and China. The reality is that multinational manufacturers now find it cheaper and easier to downsize their workforces in the UK than in European counterparts. That is not a situation we should accept.

Banbury is home to a network of key automotive suppliers, including Magna Exteriors, Faurecia, HBPO and Borg & Beck, all of which rely on just-in-time supply chains in Europe. When delays at borders increase costs, additional import-export paperwork slows down deliveries, and rules of origin requirements limit market access, it is British workers who suffer.

Under the current UK-EU trade and co-operation agreement, goods must comply with certain rules of origin regulations to qualify for tariff-free trade. That is creating new challenges for businesses, particularly manufacturers, that previously enjoyed seamless trade with the European Union. For example, a UK-based bus manufacturer exporting to the EU must ensure that at least 55% of the vehicle’s value is derived from UK or EU components, but many manufacturers rely on parts from outside the UK and the EU, making it harder to meet that requirement. Rejoining the Pan-Euro-Mediterranean convention would ease those constraints, keeping manufacturers in European and global markets. If we rejoined the PEM, components sourced from all 51 PEM countries would count as local content, making it easier for British businesses to qualify for tariff-free trade. That would be particularly beneficial for the automotive, chemical, pharmaceutical and machinery sectors.

Although rejoining the PEM will not solve all the post-Brexit trade issues, it is a practical and immediate step towards restoring smoother trade flows. It would signal to the EU that the UK is serious about improving trade relations while staying outside the customs union and the single market, which were referred to earlier.

[Ben Coleman (Chelsea and Fulham) (Lab)]

I support my hon. Friend’s encouragement for the UK to accede to the pan-Euro-Mediterranean convention. I was at a meeting last week of the UK-EU Parliamentary Partnership Assembly in Brussels, which issued a recommendation to explore options for closer customs co-operation and alignment of regulatory standards—that goes further than the current UK Government position—to facilitate trade and economic growth. That could include, for example, UK accession to the Pan-Euro-Mediterranean convention, so I hope very much that my hon. Friend is pushing at an open door with both the UK and the European Union.

[Sean Woodcock]

I thank my hon. Friend for his contribution. As I said, we have an opportunity to reduce barriers to trade, support manufacturing, attract investment and rebuild a closer relationship with Europe. The Government have rightly set a mission of making the UK the fastest-growing economy in the G7 by the end of this Parliament, and I believe that joining the PEM would be a logical step towards achieving that goal.