3. Statement by the First Minister: Update on EU Negotiations

Part of the debate – in the Senedd at 3:20 pm on 19 March 2019.

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Photo of Paul Davies Paul Davies Conservative 3:20, 19 March 2019

As the First Minister is aware, last week MPs voted to grant an extension to article 50. Of course, the length of that extension will depend on whether the Prime Minister's current deal is finally approved by Westminster. The First Minister is fully aware that I've supported the Prime Minister's deal because I believe it will respect the result of the referendum, but it would also ensure that our businesses will be able to continue trading on a reciprocal basis with the European Union. However, if the deal is finally approved, then of course article 50 will have to be extended in order to get the legislation through. Perhaps the First Minister could tell us what representations he has made regarding the extension of article 50. However, I have to tell the First Minister that I think it will be unacceptable to the people and businesses of Wales for the First Minister to encourage the extension of article 50 past June, aggravating the frustration and adding the distraction of the European elections to the Brexit process. Many people will question the relevance of these elections to an institution we are due to and will be leaving.

The First Minister has just said in his statement that taking control of our money, our border and our laws is an empty phrase, but this is exactly what the British and Welsh people voted for, and it is this that the Prime Minister is trying to deliver on. However, I am very pleased that the First Minister wants to see dynamic alignment with the social, environmental and labour market standards of the European Union, but the Prime Minister has pipped him to it, and has committed to strengthening them once we actually leave the European Union.

I agree with the First Minister that it's of critical importance that absolutely everything is done to mitigate the impact of leaving without a deal, particularly for Welsh businesses, many of whom are heavily integrated in European markets. The First Minister will be all too aware of the severe impact that EU tariffs coupled with a potential 'no deal' Brexit scenario could have on many smaller producers and supply chains across Welsh industry, especially Welsh hill farmers, who will be hit by higher tariffs. With little time on our hands, perhaps the First Minister could update us on what emergency discussions he has had and is having with Welsh business leaders.

As I've said before in this Chamber, I'm keen to constructively work with the Welsh Government where I can in order to best protect Wales's interests, and I want to reiterate that commitment this afternoon. Of course, the critical events in recent weeks could have a serious effect on the UK's ability to develop international trade deals, which will be crucial in helping to develop the Welsh economy post Brexit, as would the First Minister's party's wish to bind us in the EU customs union—the very definition of which denies us the ability to have a say in trade deals. When the First Minister formed his Government, he was quick to establish a Minister with direct responsibility for Brexit, and a Minister with direct responsibility for international trade. In light of those appointments, can the First Minister tell us what official guidance and assessments he's received from both departments on the impact of leaving the European Union, and Wales's ability to be involved in trade deals internationally in the future? Perhaps he could also confirm what work the Welsh Government has already undertaken to develop its own international trade strategy, so that Wales can hit the ground running once we leave the European Union and work with the UK Government's Department for International Trade.

Deputy Presiding Officer, Wales and indeed the rest of the United Kingdom is in unchartered territory. It's important that we do not lose sight of what's important here, and that's respecting the 2016 referendum result and ensuring the smoothest possible transition away from the European Union. In the past, the First Minister has shared my concerns over the constitutional character of the UK post Brexit, and Wales's place in that. Therefore, perhaps in response to my questions this afternoon he will also take the opportunity to update Members on the Welsh Government's assessment of the impact of Brexit on Wales in a constitutional context.

Deputy Presiding Officer, we on this side of the Chamber will work where we can with others to protect Wales's interests, both nationally and internationally. I look forward to hearing more about the Welsh Government's plans for Welsh industry post Brexit and I hope that the First Minister will now work constructively with the UK Government in the coming days and the coming weeks.