Source · Select Committees · Welsh Affairs Committee
5th Report: Brexit and trade: implications for Wales
Welsh Affairs Committee
HC 176
Published 11 December 2020
Recommendations
10
Should there be a deal then we urge the UK Government to continue working with...
Recommendation
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, …
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Wales Office
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20
Para 86
We urge the UK Government to continue to invest significantly in this campaign in the...
Recommendation
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.
Wales Office
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22
We call on the UK government to publish the outstanding guidance required for the logistics...
Recommendation
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, …
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Wales Office
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23
Para 92
As part of its trade negotiation strategy, we call on the UK Government to publish...
Recommendation
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.
Wales Office
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25
Para 108
We call on the UK Government to work with the Welsh Government and businesses in...
Recommendation
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 …
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Wales Office
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27
We urge the UK Government to maintain, and build upon, this approach as it negotiates...
Recommendation
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
Wales Office
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30
Para 122
We call on the UK Government to write to us with updated progress on the...
Recommendation
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.
Wales Office
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Conclusions (27)
1
Conclusion
Para 10
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 …
2
Conclusion
Para 18
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.
3
Conclusion
Para 18
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.
4
Conclusion
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
5
Conclusion
Para 30
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 …
6
Conclusion
Para 30
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.
7
Conclusion
Para 41
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 …
8
Conclusion
Para 42
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 …
9
Conclusion
Para 43
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 …
11
Conclusion
Para 58
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 …
12
Conclusion
Para 59
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 …
13
Conclusion
Para 67
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 …
14
Conclusion
Para 67
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 …
15
Conclusion
Para 77
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 …
16
Conclusion
Para 78
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 …
17
Conclusion
Para 79
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 …
18
Conclusion
Para 80
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 …
19
Conclusion
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 …
21
Conclusion
Para 90
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 …
24
Conclusion
Para 106
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, …
26
Conclusion
Para 114
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 …
28
Conclusion
Para 115
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.
29
Conclusion
Para 122
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.
31
Conclusion
Para 128
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.
32
Conclusion
Para 128
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.
33
Conclusion
Para 138
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.
34
Conclusion
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 …