Recommendations & Conclusions
34 items
1
Conclusion
5th Report: Brexit and trade: implicati…
Trade is a reserved policy competence and it is the role of UK Government to lead on negotiations over future trade agreements. Depending on how deep their provisions, new trade agreements may have direct implications for devolved policy areas. The devolved administrations therefore should be routinely consulted in the development …
Government response. • Whilst international trade is a reserved matter, we recognise that modern trade policy can interact with areas of devolved competence. • In recognition of the importance of this relationship, we have committed to a substantial program of Ministerial and …
Wales Office
2
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the positive relationship between DIT and Welsh Government and note that discussions are still ongoing about formalising joint working with a memorandum of understanding.
Government response. • The Ministerial Forum for Trade has been central to our constructive discussions on Welsh trade priorities. It has been warmly welcomed by devolved Ministers and will continue to facilitate conversations about our current and future free trade agreements as …
Wales Office
3
Conclusion
5th Report: Brexit and trade: implicati…
We expect DIT to finalise governance arrangements by agreeing on a concordat by January 2021 and recommend that other UK government departments consider using this as a model for strengthening their relationships with the devolved administrations.
Government response. • The Office of the Secretary of State for Wales held a series of events in November and December to help businesses and Business Representative Organisations (BROs) in Wales prepare for the end of the Transition Period. The events included …
Wales Office
4
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the establishment of the Ministerial Forum for Trade in 2020 as a mechanism for cooperation between UK Government and the devolved administrations. It is important that key Welsh interests are fully considered in trade talks. (Paragraph 24) Future trade relations with the EU
Government response. • On the 24 December the Prime Minister agreed a free trade agreement with the EU. The UK-EU Trade and Co-operation Agreement (TCA) honours the instruction of the British people—expressed in the 2016 referendum and the 2019 General Election—to take …
Wales Office
5
Conclusion
5th Report: Brexit and trade: implicati…
While we note that the UK Government has launched an extensive information campaign to warn businesses of the need to prepare for new trading arrangements with the EU, we remain concerned that many Welsh businesses have either waited to see whether a deal was reached before beginning to make their …
Government response. • From July 2021, infrastructure will be needed to meet the further requirements of full border controls on EU goods as set out in the Border Operating Model. In July 2020, the Government committed to spending £705 million on new …
Wales Office
6
Conclusion
5th Report: Brexit and trade: implicati…
We therefore urge Ministers to continue to work with business groups and other stakeholders, including the devolved administrations, to ensure as many businesses and organisations are as prepared as possible. Such efforts should make full use of Welsh media outlets and be available bilingually.
Government response. • The Government undertakes on-going regular engagement with ports, port associations (BPA and UKMPG), and business stakeholders across the UK, including in Wales and through our Welsh Government colleagues, to ensure the smooth delivery of key borders’ infrastructure. • Grants …
Wales Office
7
Conclusion
5th Report: Brexit and trade: implicati…
The EU is the main international export market for Welsh goods and agricultural produce, with a higher proportion of goods from Wales exported to and imported from the EU compared to the rest of UK. Securing a trade deal with the EU is therefore of particular importance for the Welsh …
Government response. • The UK Government has published the Border Operating Model which details the port and inland facilities which will be required under the model. This includes sites which will be required to be in place to support both Holyhead and …
Wales Office
8
Conclusion
5th Report: Brexit and trade: implicati…
In contrast, a ‘No deal’ scenario would result in tariffs when exporting Welsh goods to the EU. This could have a more negative effect on key sectors of the Welsh economy compared to the rest of the UK. We are deeply concerned about the impact of a no-deal scenario on …
Government response. • The Time Is Running Out campaign ran until the end of December and was augmented in Wales by webinars and roundtable events ran by the Office of the Secretary of State for Wales delivered with representatives from the Welsh …
Wales Office
9
Conclusion
5th Report: Brexit and trade: implicati…
However, even if there is a deal, there will be important differences in the future trading arrangements between the UK and EU as the UK will no longer be in the Single Market or Customs Union. These differences include new customs processes and procedures and will require businesses to adapt …
Government response. • The haulier handbook was launched on 18 November. It is one part of a wider package the Government has put in place to help and guide hauliers, which also includes the roll out of 46 Information and Advice Sites. …
Wales Office
10
Recommendation
5th Report: Brexit and trade: implicati…
Should there be a deal then we urge the UK Government to continue working with the EU and business groups in 2021 to explore how non-tariff barriers and additional burdens and costs can be minimised for Welsh producers. For example, we are concerned about the implications of new processes and …
Government response. • The Government does not plan to publish a Wales-specific impact assessment for trade agreements. We have published scoping assessments for agreements with the United States, Japan, Australia, and New Zealand.1 These scoping assessments set out the potential economic impacts …
Wales Office
11
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the phased approach of the Border Operating Model, however we are concerned about the readiness of Welsh ports, and availability of infrastructure and capacity at or near ports, to deal with new customs processes from January 2021. We are particularly concerned about the potential for delays at the …
Government response. • UK Government will continue to work with the Welsh Government and businesses in Wales to find the most effective ways to promote Welsh produce globally. We are working together to help Welsh producers build back exports hit by covid-19 …
Wales Office
12
Conclusion
5th Report: Brexit and trade: implicati…
The readiness of Welsh and UK ports for trade with the EU after the transition phase is a major undertaking. The UK Government needs to provide reassurances that digital and physical infrastructure will be up and running in time and that sufficient physical capacity at or near ports will be …
Government response. • Following the conclusion of the fifth negotiating round on 30 October, almost all chapter areas are now in the advanced stages of talks. A significant proportion of legal text has been agreed across multiple chapters. • Following the progress …
Wales Office
13
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the level of engagement between Welsh ports, HMRC and the Border Protocol Delivery Group. However, whether a deal is secured with the EU or not, we must accept that there will be friction at the borders. Congestion and delays at Welsh ports could have significant costs for the …
Government response. • The Trade and Agriculture Commission (TAC) is an independent advisory board, established in July 2020 by the Secretary of State for International Trade, to advise and inform the government on its future trade policies. Members of the Commission were …
Wales Office
14
Conclusion
5th Report: Brexit and trade: implicati…
The UK Government must redouble its efforts to work with business and port operators to provide confidence that the necessary systems and infrastructure will be in place, fully tested and functioning well in advance of July 2021. The UK Government should Brexit and trade: implications for Wales 41 also maintain …
Government response. • Our high standards of food safety will not be watered down in the pursuit of a trade deal. High standards and high quality are what our domestic and global customers demand, and that is what we will provide. It …
Wales Office
15
Conclusion
5th Report: Brexit and trade: implicati…
Holyhead is one of the most important ports in the UK and plays a key role in the Welsh and wider UK economy. While we acknowledge Stena Line’s comments that they are doing all they can to prepare for new trading processes and checks after the end of the transition …
Government response. From July 2021, infrastructure will be needed to meet the further requirements of full border controls on EU goods as set out in the Border Operating Model. In July 2020, the Government committed to spending £705 million on new border …
Wales Office
16
Conclusion
5th Report: Brexit and trade: implicati…
The decision to locate checks and customs processes away from port and at an inland facility was described to us as a ‘positive tick’, however there is a risk that this just results in significant congestion occurring only a few miles away from Port. The potential impact of any congestion …
Government response. From July 2021, infrastructure will be needed to meet the further requirements of full border controls on EU goods as set out in the Border Operating Model. In July 2020, the Government committed to spending £705 million on new border …
Wales Office
17
Conclusion
5th Report: Brexit and trade: implicati…
We are deeply concerned that, so close to the end of the transition period, and with not much time left until the staggered controls take effect in July 2021, the decisions on the location of the inland facility for Holyhead Port and the equivalent facilities in South-west Wales has yet …
Government response. From July 2021, infrastructure will be needed to meet the further requirements of full border controls on EU goods as set out in the Border Operating Model. In July 2020, the Government committed to spending £705 million on new border …
Wales Office
18
Conclusion
5th Report: Brexit and trade: implicati…
There is an unacceptable level of risk that inland facilities will not be ready in either North or South-west Wales for the full introduction of border checks and processes in July 2021. It has been clear since the beginning of the UK-EU trade talks, that regardless of a deal being …
Government response. From July 2021, infrastructure will be needed to meet the further requirements of full border controls on EU goods as set out in the Border Operating Model. In July 2020, the Government committed to spending £705 million on new border …
Wales Office
19
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the improvement in the UK Government’s communications ahead of the end of the transition period and specifically the ‘Time is Running Out’ campaign. Preparedness for new processes is essential and it is imperative that as many businesses as possible are alerted to the changes which they will be …
Government response. The Time Is Running Out campaign ran until the end of December and was augmented in Wales by webinars and roundtable events ran by the Office of the Secretary of State for Wales delivered with representatives from the Welsh business …
Wales Office
20
Recommendation
5th Report: Brexit and trade: implicati…
We urge the UK Government to continue to invest significantly in this campaign in the run-up to 1 January and to continue to do so during 2021. This campaign should fully involve all relevant stakeholders in Wales to maximise its reach within Wales.
Government response. The Time Is Running Out campaign ran until the end of December and was augmented in Wales by webinars and roundtable events ran by the Office of the Secretary of State for Wales delivered with representatives from the Welsh business …
Wales Office
21
Conclusion
5th Report: Brexit and trade: implicati…
Once the transition period ends, considerable responsibility will fall on hauliers and individual drivers to be as prepared as possible for the additional checks and processes that will be at place at the border with the EU. We therefore share the disappointment of the sector at the delay in producing …
Government response. The haulier handbook was launched on 18 November. It is one part of a wider package the Government has put in place to help and guide hauliers, which also includes the roll out of 46 Information and Advice Sites. Two …
Wales Office
22
Recommendation
5th Report: Brexit and trade: implicati…
We call on the UK government to publish the outstanding guidance required for the logistics industry as a matter of urgency. In light of these delays, the UK Government should also explore what additional measures will be needed to effectively, and at such late notice, communicate this guidance to the …
Government response. The haulier handbook was launched on 18 November. It is one part of a wider package the Government has put in place to help and guide hauliers, which also includes the roll out of 46 Information and Advice Sites. Two …
Wales Office
23
Recommendation
5th Report: Brexit and trade: implicati…
As part of its trade negotiation strategy, we call on the UK Government to publish a Wales-specific impact assessment of any trade agreements, including the recently signed agreement with Japan.
Government response. The Government does not plan to publish a Wales-specific impact assessment for trade agreements. We have published scoping assessments for agreements with the United States, Japan, Australia, and New Zealand.1 These scoping assessments set out the potential economic impacts on …
Wales Office
24
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the progress of trade talks with non-EU countries and the UK Government’s intention to join the CPTPP partnership in 2021. Trade liberalisation will pose challenges, as well as opportunities, for Welsh producers and it is vital that the UK Government recognises the potential risks, as well as rewards, …
Government response. UK Government will continue to work with the Welsh Government and businesses in Wales to find the most effective ways to promote Welsh produce globally. We are working together to help Welsh producers build back exports hit by covid-19 and …
Wales Office
25
Recommendation
5th Report: Brexit and trade: implicati…
We call on the UK Government to work with the Welsh Government and businesses in Wales to explore how best to promote Welsh produce globally. We also recommend engagement with the Welsh Government in discussions about the impact of trade negotiations on the Welsh economy. The UK Government must recognise …
Government response. UK Government will continue to work with the Welsh Government and businesses in Wales to find the most effective ways to promote Welsh produce globally. We are working together to help Welsh producers build back exports hit by covid-19 and …
Wales Office
26
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the signing of the UK-Japan Comprehensive Economic Partnership Agreement, the UK’s first free trade agreement as an independent trading nation. For decades Japanese firms have played a significant role in the Welsh economy and Japan is an important trading partner for the whole UK. We welcome the level …
Government response. The Government is grateful to the Welsh Affairs Select Committee for its report Brexit and trade: implications for Wales, published on 11 December 2020. I would like to thank the Committee and all those who contributed evidence to its inquiry …
Wales Office
27
Recommendation
5th Report: Brexit and trade: implicati…
We urge the UK Government to maintain, and build upon, this approach as it negotiates further FTAs. (Paragraph 114) Brexit and trade: implications for Wales 43
Government response. The Government is grateful to the Welsh Affairs Select Committee for its report Brexit and trade: implications for Wales, published on 11 December 2020. I would like to thank the Committee and all those who contributed evidence to its inquiry …
Wales Office
28
Conclusion
5th Report: Brexit and trade: implicati…
The official recognition of 15 Welsh products through protected geographical indicators in the UK-Japan FTA reinforces the importance of the agreement to Wales and will encourage further growth in Welsh agricultural exports to Japan.
Government response. The Government is grateful to the Welsh Affairs Select Committee for its report Brexit and trade: implications for Wales, published on 11 December 2020. I would like to thank the Committee and all those who contributed evidence to its inquiry …
Wales Office
29
Conclusion
5th Report: Brexit and trade: implicati…
We note the progress of trade negotiations with the USA. However, it is unclear what the change in administration will mean for the continued progress of these negotiations.
Government response. The Government is grateful to the Welsh Affairs Select Committee for its report Brexit and trade: implications for Wales, published on 11 December 2020. I would like to thank the Committee and all those who contributed evidence to its inquiry …
Wales Office
30
Recommendation
5th Report: Brexit and trade: implicati…
We call on the UK Government to write to us with updated progress on the negotiations in early 2021, following the new administration taking office. We also urge the UK Government to discuss lifting the ban on lamb during trade talks.
Government response. Following the conclusion of the fifth negotiating round on 30 October, almost all chapter areas are now in the advanced stages of talks. A significant proportion of legal text has been agreed across multiple chapters. • Following the progress made …
Wales Office
31
Conclusion
5th Report: Brexit and trade: implicati…
We welcome the establishment of the Trade and Agriculture Commission (TAC) and it being placed on a statutory footing to enable parliamentary scrutiny of trade deals. We also note the importance of having representation from Wales on the board.
Government response. The Trade and Agriculture Commission (TAC) is an independent advisory board, established in July 2020 by the Secretary of State for International Trade, to advise and inform the government on its future trade policies. Members of the Commission were selected …
Wales Office
32
Conclusion
5th Report: Brexit and trade: implicati…
TAC should continue to work with Welsh agricultural interests to explore workable proposals for strengthening UK food standards while facilitating growth in UK’s international agricultural trade.
Government response. The Trade and Agriculture Commission (TAC) is an independent advisory board, established in July 2020 by the Secretary of State for International Trade, to advise and inform the government on its future trade policies. Members of the Commission were selected …
Wales Office
33
Conclusion
5th Report: Brexit and trade: implicati…
The UK will no longer be subject to EU law following the end of the transition period. We welcome the fact that all current EU food production standards have been rolled into UK law and the strong assurances from UK ministers that these high standards will not be diluted.
Government response. Our high standards of food safety will not be watered down in the pursuit of a trade deal. High standards and high quality are what our domestic and global customers demand, and that is what we will provide. It is …
Wales Office
34
Conclusion
5th Report: Brexit and trade: implicati…
It is essential that UK regulatory standards are not compromised in any future trade deals. Any move to unpick UK food production standards in order to secure free trade agreements with large agricultural exporters would be a betrayal of Welsh farming interests. (Paragraph 138) 44 Brexit and trade: implications for …
Government response. Our high standards of food safety will not be watered down in the pursuit of a trade deal. High standards and high quality are what our domestic and global customers demand, and that is what we will provide. It is …
Wales Office