10. What are the implications for the Welsh economy as a result of Japan's statement on the potential loss of tariff-free trade with the UK due to Brexit? OAQ(5)0163(FM)

The Japanese Government’s statement covers a number of potential adverse economic implications of the UK’s exit. It’s for the reasons that are outlined by that Government that we want businesses in Wales to have full and unfettered access to the single market.

I’m sure we all do, but unfortunately many members of the UK Government seem to be pushing in the opposite direction, which is extremely worrying for the some 6,000 people who depend on jobs that have resulted from Japanese investment, including Panasonic in my own constituency up in Pentwyn. So, I just wondered how we are going to be able to influence the UK Government to ensure that we will continue to have free trade with the European Union, because otherwise the future for inward investment looks extremely bleak.

To me, agreeing that fundamental point is essential before we can move on to anything else. That is the basis—the building block—on which any deal can be built. Unless we get progress on that, it’s very difficult to see progress on anything else.

I’m certainly concerned that the UK is now seen as not wanting to engage with the EU. There are issues. I met with the chief commissioner of Gibraltar two days ago—the worry that Gibraltar has is that Spain will veto any deal of any kind with the UK unless the issue of Gibraltar is resolved to Spain’s satisfaction. It’s an opportunity that Spain has that wasn’t there before, which Brexit has delivered. So, there are many, many factors still at play here, some of which will not yet have been identified.

I thank the First Minister.