Select Committee · Welsh Affairs Committee

Brexit and trade: implications for Wales

Status: Closed Opened: 4 Mar 2020 Closed: 16 Feb 2021 14 recommendations 20 conclusions 1 report

The Welsh Affairs Committee has launched an inquiry that will look into the implications of the UK-EU trade negotiations for Wales. Having paused this inquiry in April, to focus on COVID-19, the Committee has resumed this inquiry, written evidence submissions will be accepted until the autumn and oral evidence sessions will take place once the … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
5th Report: Brexit and trade: implications for Wales HC 176 11 Dec 2020 34 Responded

Recommendations & Conclusions

15 items
4 Conclusion 5th Report: Brexit and trade: implicati… Accepted

We welcome the establishment of the Ministerial Forum for Trade in 2020 as a mechanism...

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 Read more

Government response AI summary
The government describes the recently signed UK-EU Trade and Co-operation Agreement and ongoing engagement with Welsh businesses by the Secretary of State for Wales and Chancellor of the Duchy of Lancaster to address trading arrangements.
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Wales Office
6 Recommendation 5th Report: Brexit and trade: implicati… Accepted

We therefore urge Ministers to continue to work with business groups and other stakeholders, including...

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. Read more

Government response AI summary
The government outlines its ongoing regular engagement with ports, business stakeholders, and Welsh Government colleagues to ensure preparedness and the smooth delivery of border infrastructure, including grants and collaborative efforts to expedite delivery for Welsh ports.
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Wales Office
9 Conclusion 5th Report: Brexit and trade: implicati… Accepted

However, even if there is a deal, there will be important differences in the future...

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 … Read more

Government response AI summary
The government details existing measures, including the launch of a multi-language haulier handbook developed with stakeholders and the establishment of information and advice sites, to help businesses adapt to new customs processes and procedures.
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Wales Office
15 Conclusion 5th Report: Brexit and trade: implicati… Accepted

Holyhead is one of the most important ports in the UK and plays a key...

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 … Read more

Government response AI summary
The government responded by outlining £705 million in funding for new border infrastructure, including improved IT systems, and allocated Port Infrastructure Fund money for on-site facilities at Holyhead while also working with the Welsh Government to deliver inland facilities.
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Wales Office
16 Conclusion 5th Report: Brexit and trade: implicati… Accepted

The decision to locate checks and customs processes away from port and at an inland...

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 … Read more

Government response AI summary
The government committed £705 million for border infrastructure, including funds for on-site facilities at Holyhead and for Inland Border Facilities in North and South Wales, stating it is working with the Welsh Government to speed up delivery, acknowledging challenging timescales.
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Wales Office
17 Conclusion 5th Report: Brexit and trade: implicati… Accepted

We are deeply concerned that, so close to the end of the transition period, and...

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 … Read more

Government response AI summary
The government committed £705 million for border infrastructure, including funds for Inland Border Facilities in North and South Wales, and stated it is working closely with the Welsh Government to speed up delivery, acknowledging the challenging timescales to have facilities ready for July 2021.
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Wales Office
19 Conclusion 5th Report: Brexit and trade: implicati… Accepted

We welcome the improvement in the UK Government’s communications ahead of the end of the...

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 … Read more

Government response AI summary
The government confirms the 'Time is Running Out' campaign ran as described and details ongoing efforts to support businesses adapting to new trading arrangements through GOV.UK, export helplines, webinars, and continued engagement with Welsh businesses.
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Wales Office
21 Conclusion 5th Report: Brexit and trade: implicati… Accepted

Once the transition period ends, considerable responsibility will fall on hauliers and individual drivers to...

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 … Read more

Government response AI summary
The government states that the haulier handbook was launched on 18 November and describes a wider package of support for hauliers, including 46 information and advice sites across the UK (two in Wales) and a multimillion-pound information campaign.
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Wales Office
22 Recommendation 5th Report: Brexit and trade: implicati… Accepted

We call on the UK government to publish the outstanding guidance required for the logistics...

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 … Read more

Government response AI summary
The government accepted the recommendation, stating that the haulier handbook was launched on 18 November and is part of a wider package of support, including 46 information and advice sites and a multimillion-pound information campaign, to communicate guidance to the logistics sector.
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Wales Office
24 Conclusion 5th Report: Brexit and trade: implicati… Accepted

We welcome the progress of trade talks with non-EU countries and the UK Government’s intention...

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, … Read more

Government response AI summary
The government states it recognizes the value of agricultural exports and will continue to work with the Welsh Government and businesses to promote Welsh produce globally and facilitate discussions on the impact of trade agreements.
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Wales Office
25 Recommendation 5th Report: Brexit and trade: implicati… Accepted

We call on the UK Government to work with the Welsh Government and businesses in...

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 … Read more

Government response AI summary
The government accepts the recommendation, committing to continue working with the Welsh Government and businesses to promote Welsh produce globally, engage in regular discussions on trade agreement impacts, and recognizes the importance of agricultural exports in securing new market access through FTAs.
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Wales Office
31 Conclusion 5th Report: Brexit and trade: implicati… Accepted

We welcome the establishment of the Trade and Agriculture Commission (TAC) and it being placed...

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 AI summary
The government detailed that the Trade and Agriculture Commission (TAC) already includes Welsh farmer representatives and extensively engages with Welsh stakeholders, confirming that the statutory TAC's membership will include expertise from across the UK.
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Wales Office
32 Recommendation 5th Report: Brexit and trade: implicati… Accepted

TAC should continue to work with Welsh agricultural interests to explore workable proposals for strengthening...

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 AI summary
The government stated the Trade and Agriculture Commission (TAC) already includes Welsh farmer representatives and has extensively engaged with Welsh agricultural interests through various channels, confirming this will continue when the TAC is placed on a statutory footing.
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Wales Office
33 Conclusion 5th Report: Brexit and trade: implicati… Accepted

The UK will no longer be subject to EU law following the end of the...

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. Read more

Government response AI summary
The government reaffirmed its commitment that high food safety standards will not be diluted in the pursuit of trade deals, stressing that the UK will maintain its own autonomous standards and regulations.
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Wales Office
34 Conclusion 5th Report: Brexit and trade: implicati… Accepted

It is essential that UK regulatory standards are not compromised in any future trade deals.

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 … Read more

Government response AI summary
The government explicitly affirmed that high UK food safety and production standards will not be compromised or watered down in the pursuit of new trade deals, stating the UK will maintain its own autonomous standards.
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Wales Office

Oral evidence sessions

6 sessions
Date Witnesses
19 Nov 2020 Jeremy Miles MS · Welsh Government View ↗
5 Nov 2020 Rt Hon Greg Hands · Department of International Trade, Rt Hon Simon Hart · Wales Office View ↗
8 Oct 2020 Dr Kathryn Ringwald Wildman, Steel industry analyst, Dr Richard Greville · Association of the British Pharmaceutical Industry, Professor Peter Wells · Cardiff Business School View ↗
1 Oct 2020 Andrew Harston · Associated British Ports, Ian Davies · Stena Line, Richard Ballantyne · British Ports Association, Spencer Birns · Cardiff Airport View ↗
17 Sep 2020 Dr Ludivine Petetin · Cardiff University, Prof Nicholas Perdikis · Aberystwyth University, Prof Patrick Minford · Cardiff University, Prof Sangeeta Khorana · Bournemouth University View ↗
3 Sep 2020 Mujtaba Rahman · Eurasia Group, Sam Lowe · Centre for European Reform, Shanker Singham · Competere View ↗

Who gave evidence

17 witnesses
WitnessOrganisationSessions
Andrew Harston · Director, Wales and Short Sea Ports Associated British Ports 1
Dr Kathryn Ringwald Wildman, Steel industry analyst 1
Dr Ludivine Petetin · Reader in Law Cardiff University 1
Dr Richard Greville · Director ABPI Wales Cymru & Distribution Supply C… Association of the British Pharmaceutical Industry 1
Ian Davies · Head of UK Port Authorities Stena Line 1
Jeremy Miles MS · Counsel General for Wales and Minister for Europe… Welsh Government 1
Mujtaba Rahman · Managing Director, Europe Eurasia Group 1
Prof Nicholas Perdikis · Professor of international business economy Aberystwyth University 1
Prof Patrick Minford · Professor of Applied Economics Cardiff University 1
Prof Sangeeta Khorana · Professor of Economics Bournemouth University 1
Professor Peter Wells · Director of the Centre for Automotive Industry Re… Cardiff Business School 1
Richard Ballantyne · Chief Executive Officer British Ports Association 1
Rt Hon Greg Hands · Minister of State for Trade Policy Department of International Trade 1
Rt Hon Simon Hart · Secretary of State for Wales Wales Office 1
Sam Lowe · Senior Research Fellow Centre for European Reform 1
Shanker Singham · CEO Competere 1
Spencer Birns · Interim CEO Cardiff Airport 1

Correspondence

1 letter
DateDirectionTitle
1 Dec 2020 Follow-up written evidence from the Rt Hon Greg Hands MP, re the Committee's Br…