Source · Select Committees · Welsh Affairs Committee
Recommendation 7
7
Not Addressed
Paragraph: 41
The EU is the main international export market for Welsh goods and agricultural produce, with...
Conclusion
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 economy. A zero tariffs, zero quotas arrangement is of much greater benefit to the Welsh economy than trading on purely WTO terms. It would remove the immediate threat of damaging tariffs and could lay a strong foundation for businesses in Wales to have a close post-Brexit trade relationship with the EU. More than four years after the referendum, during which time businesses have faced considerable uncertainty and many have delayed 40 Brexit and trade: implications for Wales long term planning and investment decisions, we hope that a deal will create a stronger investment climate in Wales and unlock important, and much needed, growth decisions.
Government response summary AI-generated
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.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
41
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
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 back control of our laws, borders, money, trade and fisheries. The Agreement ensures tariff free and quota free access to the EU market for Welsh businesses. Since the TCA was signed, the Secretary of State for Wales has continued engagement with Welsh businesses to get feedback from them on their first hand experiences of the new trading arrangements with the EU. Furthermore, the Chancellor of the Duchy of Lancaster met Welsh business people on 4 February—as part of the Brexit Business Taskforce series of meetings—to identify challenges facing traders in Wales and find solutions to outstanding issues. The Government believes the TCA is generally working well. The majority of Welsh firms are trading with the EU much as they have always done. There are however a number of teething problems in specific import/export sectors which the Government is committed to resolving, both by engaging with business to help familiarisation with the new trading arrangements and engaging with the EU to iron out difficulties in specific areas.
Read the full response on Parliament ↗