3. Statement by the First Minister: 'Trade Policy: the Issues for Wales'

Part of the debate – in the Senedd at 3:00 pm on 6 February 2018.

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Photo of Carwyn Jones Carwyn Jones Labour 3:00, 6 February 2018

He talks about the Flemish Government. Of course the UK is an important market, but the integrity of the European single market is far more important to any country or any manufacturer than anything else. We were told that the German car manufacturers would drive—they would probably drive—to our rescue. They've said quite clearly that, 'The UK is an important market, but the integrity of the European single market is far more important to us, and we're not going to do anything to disrupt that.' So, that was untrue, and that is something that was found to be wrong.

In terms of our exports, the figure varies, in terms of the 60s—sometimes up, sometimes down. But what is absolutely clear is that the vast majority of our exports go to the single market. Does that mean we can't sell there in the future? No, of course it doesn't. It doesn't mean we can't trade and sell in the European single market. All it means is that what we produce will be subject to barriers that don't currently exist, whether they are financial barriers or non-tariff barriers—paperwork, bureaucracy. People say about reducing bureaucracy; this is a vast raft of bureaucracy that's going to be imposed on business as a result of Brexit, and those barriers are important, because it would mean that we are less competitive in those markets. We already know that some countries in Europe are looking at producing light hill lambs, because they think that our products will be more expensive on the European market and they will be able to compete against us. And we must be absolutely clear about that.

He mentioned how long membership of the customs union should be. Well, until there are better alternatives, frankly. A transitional period, yes, but I'm not wedded to the idea that the transitional period should be for a specified amount of time. Surely the transitional period should be for as long as is good for the UK and is good for Wales.

And then, finally, in terms of frameworks—he asked about frameworks. Progress is being made on frameworks. Discussions are happening. They are without prejudice, of course, to an agreement being reached on clause 11, and the other clauses of the withdrawal Bill that impinge on the devolution settlement, but those discussions are ongoing. And I can see from the Conservative front bench that the hard Brexiters have already been expelled. [Laughter.]