3. Will the First Minister make a statement on progress made in promoting Welsh trade with the United States of America? OAQ51877

Yes. I refer the Member to my written statement, which was issued earlier today.

The First Minister went to the United States promoting a free trade deal between the UK and the United States. He came back saying we have to leave it to the EU. Isn't the truth that his policy of a new customs union with the EU is the worst of all worlds, in that we would have no independent trade policy yet we would have no say and no vote over the EU's trade policy? As with Turkey, the EU would set our trade policy and we would have no say. The US or Russia could specifically target UK exports and we would have no power to respond. How on earth would that be in our interests? 

Well, size and mass are important. The UK is just 60 million. The EU is far, far bigger. The US is far, far bigger. We are surely in a better position when we work with other countries in order to develop a common goal. That seems to me to be perfect common sense. But I have to say to him—. He mentions the customs union. Once again I say in this Chamber: offer a better alternative to the customs union—none has been offered—and secondly, solve Ireland. How many times have I said it? I was saying it three years ago in this Chamber, that Ireland was at the heart of the problem when it came to a deal between the UK and the EU. Nobody has come forward with any suggestion that involves the possibility of an open border between the north and south in Ireland and yet still have the UK out of the customs union and the republic inside the customs union. That would create a situation where smuggling would be rife, there's no question about that. That is the question that was never answered in the referendum, hasn't been answered now and still has no solution, apart from the obvious solution which is to stay in the customs union. 

During your meetings with representatives of the Government of Quebec last week, did you have an opportunity to discuss the veto that they have in Quebec over international trade deals? You, in your comments to date, have said that you want Wales to have an influence, but not the kind of veto that territories of Canada, for example, and, truth be told, European regions such as Flanders and Wallonie have. Have you changed your view given your visit?

Well, it wasn't raised during the discussions. Of course, the Quebec Government is one that believes in the unity of Canada, but they don't view it as any kind of a problem. But, of course, one of the things I did discuss with them was the system of shared sovereignty that exists in Canada. And that is a system that, in my view, should be considered in the United Kingdom.

First Minister, the leader of the UKIP group has already raised the issue that President Trump tweeted about the trade tariffs on steel. Unlike him, I and my constituents—many are steelworkers—have deep concerns about the content of that tweet and the implications it has for the steel industry. Will you raise as a Government with the UK Government as much as possible the actions to be taken within the UK to protect the steel industry because the cost to the UK steel industry is unacceptable? It might be 10 per cent going out to the United States because of Tata, but that 10 per cent has major financial implications for steel and implications for Port Talbot. Will you therefore protect the steel industry as much as you can and make sure the UK Government does so and works with the EU this time, rather than hinders it, in actually addressing this issue?

Absolutely. I know that a letter has gone from UK Steel to the UK Government emphasising this point, saying the obvious point that whatever is not able to be exported will seek to find a market within the EU, and that will inevitably mean a depression in the price of steel, and that will have an effect on all European steelmakers, including, of course, those in Wales.

I very much regret the blunt imposition of tariffs that has been imposed by the US Government. Look, I have argued for tariffs in the past against steel from China. I've said it in this Chamber. But the whole point is that you look to be selective in order to make sure that you protect your industries against those products that carry the greatest risk. Welsh steel is not a risk to US steel. It's not a risk to American security, it's not a risk to the US steel industry because we produce products that, by and large, are not manufactured in the US, and yet here we have the US Government trying to use the blunt instrument of a tariff against all goods coming into the US, and that is a point that we have made to the UK Government, that this is something that's not acceptable. In fairness, the UK Government has accepted that point. We know that the Prime Minister has spoken to the President of the US expressing her grave concern at what's being proposed.