Part of the debate – in the Senedd at 2:57 pm on 4 April 2017.
Well, that assumes rationality on the part of the European Union negotiators. I very much hope that we will not have. I have to say that the evidence over the last week is not encouraging, with Chancellor Merkel wanting to detach negotiations on trade from other issues that divide us, which is not sensible given we have only a two-year timeframe within which to reach a trade deal. The gratuitous addition of Gibraltar to the negotiations is another irritant that is not likely to assist a sensible resolution of the arguments between us. But it must surely be massively in the interests of the EU, as well as for this country, for us to facilitate trade rather than to obstruct it.
Given that, for Germany alone, we have a £20 billion a year deficit in cars, just in that one sector, then it’s clearly in Germany’s interest, as the motor of the EU, to use its weight and influence to achieve the outcome that would be mutually beneficial—one of free trade. What goes for cars goes for all sorts of areas of trade between us, even in agricultural products, which the First Minister quite rightly refers to, because agriculture is a balkanised market all around the world. Even where we do have free trade agreements with other countries, very often agriculture is marked out as being different and remains subject to all sorts of trade restrictions.
Even in the case of lamb, for example, we actually have a trade deficit in the UK in sheep meat. Therefore, although for Wales this is a massively important issue for agriculture, because we export such a huge proportion of our production of lamb, in the UK as a whole, which will be negotiating for us, we have an opportunity to ensure a sensible outcome.
I see the red light is on, Llywydd, and I’ve not been able to develop my argument because I was seduced by Rhianon Passmore into going down an avenue that I hadn’t intended to. But the main point I want to make is that this is an opportunity for us and not a threat. It’s a challenge, of course, but life is full of challenges. Any business worth its salt knows it has to change. Nothing ever stands still. Let us grasp this opportunity and make the best of it for the people of Wales.