Brexit and trade: implications for Wales

Welsh Affairs Committee Closed Inquiry
Opened: 4 Mar 2020 Closed: 16 Feb 2021 Parliament page
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 … Read more
14 Recommendations
20 Conclusions
1 Report
6 Oral sessions
1 Letter
6 Events
Activity timeline 9 events
16 Feb
2021
Report published
11 Dec
2020
Report published
1 Dec
2020
Correspondence
19 Nov
2020
Oral evidence
5 Nov
2020
Oral evidence
8 Oct
2020
Oral evidence
1 Oct
2020
Oral evidence
17 Sep
2020
Oral evidence
3 Sep
2020
Oral evidence
Oral evidence sessions 6 sessions
19 Nov 2020
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Oral evidence
Jeremy Miles MS · Welsh Government
5 Nov 2020
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Rt Hon Greg Hands · Department of International Trade Rt Hon Simon Hart · Wales Office
8 Oct 2020
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Dr Kathryn Ringwald Wildman, Steel industry analyst Dr Richard Greville · Association of the British Pharmaceutical Industry Professor Peter Wells · Cardiff Business School
1 Oct 2020
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Andrew Harston · Associated British Ports Ian Davies · Stena Line Richard Ballantyne · British Ports Association Spencer Birns · Cardiff Airport
17 Sep 2020
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Oral evidence
Dr Ludivine Petetin · Cardiff University Prof Nicholas Perdikis · Aberystwyth University Prof Patrick Minford · Cardiff University Prof Sangeeta Khorana · Bournemouth University
3 Sep 2020
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Oral evidence
Mujtaba Rahman · Eurasia Group Sam Lowe · Centre for European Reform Shanker Singham · Competere
Title HC No. Published Items Response
5th Report: Brexit and trade: implications for Wales HC 176 11 Dec 2020 34 Responded
Recommendations & Conclusions
34 results
1 Recommendation Acknowledged
5th Report: Brexit and trade: impl…
Trade is a reserved policy competence and it is the role of UK Government to...
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 … Read more
Government Response
The government acknowledged the recommendation, recognising that trade policy interacts with devolved competence and stating they have committed to a substantial program of Ministerial and official engagement with devolved administrations.
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2 Conclusion Acknowledged
5th Report: Brexit and trade: impl…
We welcome the positive relationship between DIT and Welsh Government and note that discussions are...
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 government highlights its existing positive engagement through the Ministerial Forum for Trade and states that wider working arrangements with devolved administrations will be constantly reviewed, but does not commit to formalising joint working with a memorandum of understanding.
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3 Recommendation Not Addressed
5th Report: Brexit and trade: impl…
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
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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4 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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5 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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6 Recommendation Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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7 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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8 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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9 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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10 Recommendation Not Addressed
5th Report: Brexit and trade: impl…
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, … Read more
Government Response
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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11 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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12 Recommendation Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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13 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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14 Recommendation Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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15 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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16 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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17 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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18 Recommendation Accepted in Part
5th Report: Brexit and trade: impl…
There is an unacceptable level of risk that inland facilities will not be ready in...
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 … Read more
Government Response
The government details significant funding for border infrastructure and confirms Holyhead, Pembroke, and Fishguard have received funds for on-site facilities, working with the Welsh Government on inland facilities despite challenging timescales, but does not explicitly commit to publishing contingency plans.
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19 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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20 Recommendation Rejected
5th Report: Brexit and trade: impl…
We urge the UK Government to continue to invest significantly in this campaign in the...
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 government states the 'Time Is Running Out' campaign concluded at the end of December, thus not continuing it into 2021 as recommended. It instead describes ongoing broader support and new campaigns post-transition.
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21 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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22 Recommendation Accepted
5th Report: Brexit and trade: impl…
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, … Read more
Government Response
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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23 Recommendation Rejected
5th Report: Brexit and trade: impl…
As part of its trade negotiation strategy, we call on the UK Government to publish...
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 rejected the recommendation to publish Wales-specific impact assessments, stating it already publishes UK-wide scoping and impact assessments that include potential economic effects on all regions and nations, including Wales.
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24 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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25 Recommendation Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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26 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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27 Recommendation Not Addressed
5th Report: Brexit and trade: impl…
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
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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28 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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
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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29 Conclusion Not Addressed
5th Report: Brexit and trade: impl…
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
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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30 Recommendation Acknowledged
5th Report: Brexit and trade: impl…
We call on the UK Government to write to us with updated progress on the...
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
The government provides an update on US trade talks and states they will continue working with the new administration to facilitate UK lamb exports once the US Small Ruminant Rule is published, but does not commit to writing with updated progress in early 2021 or explicitly discussing lifting the ban.
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31 Conclusion Accepted
5th Report: Brexit and trade: impl…
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
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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32 Recommendation Accepted
5th Report: Brexit and trade: impl…
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
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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33 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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34 Conclusion Accepted
5th Report: Brexit and trade: impl…
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 … Read more
Government Response
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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Government Response AI assessment · 34 of 14 classified
Accepted 15
Accepted in Part 1
Acknowledged 3
Not Addressed 13
Rejected 2
Total 14 recs + 20 conclusions
Correspondence 1 letter
1 Dec 2020 Follow-up written evidence from the Rt Hon Greg Hands MP, re the Committee's Brexit and trade: implications for Wales inquiry, 27 November 20
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