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

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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

13 items
3 Recommendation 5th Report: Brexit and trade: implicati… Not Addressed

We expect DIT to finalise governance arrangements by agreeing on a concordat by January 2021...

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 AI summary
The government response details engagement and webinar events conducted by the Office of the Secretary of State for Wales, which does not address the recommendation for DIT to finalise governance arrangements or a concordat by January 2021.
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Wales Office
5 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

While we note that the UK Government has launched an extensive information campaign to warn...

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 … Read more

Government response AI summary
The government's response details funding and plans for new border infrastructure and inland facilities in Wales to meet future control requirements, but does not address the Committee's concern about Welsh businesses' awareness or preparedness for new trading arrangements.
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Wales Office
7 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

The EU is the main international export market for Welsh goods and agricultural produce, with...

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 … Read more

Government response AI summary
The government's response did not address the committee's observations about the importance of a zero-tariffs, zero-quotas trade deal with the EU for the Welsh economy, instead focusing on the Border Operating Model and inland border facilities.
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Wales Office
8 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

In contrast, a ‘No deal’ scenario would result in tariffs when exporting Welsh goods to...

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 … Read more

Government response AI summary
The government's response describes campaigns and support initiatives for Welsh businesses adapting to new trading arrangements post-transition period, but does not directly address the committee's stated concerns about the impact of a hypothetical 'no-deal' scenario on the Welsh economy.
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Wales Office
10 Recommendation 5th Report: Brexit and trade: implicati… Not Addressed

Should there be a deal then we urge the UK Government to continue working with...

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 … Read more

Government response AI summary
The government states it does not plan to publish Wales-specific impact assessments for trade agreements, referring to broader UK assessments, but does not address the recommendation to work on minimising non-tariff barriers or provide mitigation proposals for a no-deal scenario.
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Wales Office
11 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

We welcome the phased approach of the Border Operating Model, however we are concerned about...

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 … Read more

Government response AI summary
The government's response focuses on promoting Welsh produce and securing new market access through FTAs, but does not address the committee's concerns about the readiness of Welsh ports, infrastructure capacity, or potential delays at Holyhead for new customs processes.
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Wales Office
12 Recommendation 5th Report: Brexit and trade: implicati… Not Addressed

The readiness of Welsh and UK ports for trade with the EU after the transition...

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 … Read more

Government response AI summary
The government's response discusses ongoing trade talks with the US and efforts to facilitate lamb exports, completely failing to address the recommendation regarding the readiness of Welsh and UK ports for trade with the EU.
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Wales Office
13 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

We welcome the level of engagement between Welsh ports, HMRC and the Border Protocol Delivery...

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 … Read more

Government response AI summary
The government's response discusses the Trade and Agriculture Commission and its engagement with Welsh agricultural stakeholders, failing to address the committee's observation about potential congestion and delays at Welsh ports and implications for logistics chains.
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Wales Office
14 Recommendation 5th Report: Brexit and trade: implicati… Not Addressed

The UK Government must redouble its efforts to work with business and port operators to...

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 … Read more

Government response AI summary
The government's response discusses maintaining food safety standards and national sovereignty in trade agreements, but does not address the recommendation to redouble efforts on border infrastructure readiness or maintain ongoing dialogue with the EU.
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Wales Office
26 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

We welcome the signing of the UK-Japan Comprehensive Economic Partnership Agreement, the UK’s first free...

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 … Read more

Government response AI summary
The government provided a generic introductory statement acknowledging the report and thanking the Committee, but did not specifically address the Committee's welcome of the UK-Japan trade agreement or the level of consultation.
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Wales Office
27 Recommendation 5th Report: Brexit and trade: implicati… Not Addressed

We urge the UK Government to maintain, and build upon, this approach as it negotiates...

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 AI summary
The government provides a general opening statement acknowledging the report and stating it has considered the recommendations, but this response does not address the specific recommendation to maintain and build upon an approach for future FTAs.
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Wales Office
28 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

The official recognition of 15 Welsh products through protected geographical indicators in the UK-Japan FTA...

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 AI summary
The government's response was a boilerplate acknowledgement of the committee's report and did not address the specific conclusion about the positive impact of protected geographical indicators for Welsh products in the UK-Japan FTA.
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Wales Office
29 Conclusion 5th Report: Brexit and trade: implicati… Not Addressed

We note the progress of trade negotiations with the USA.

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 AI summary
The government provided a general introductory statement for the report response and did not address the committee's specific observation about US trade negotiations.
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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…