1. How is the Welsh Government supporting Welsh international trade? OAQ54093

Diolch. We're actively working with companies across Wales to support them to grow their exports and are leveraging our international connections to link them with opportunities.

Thank you. According to media coverage, as Brussels has signed new trade deals around the world, goods from partner countries can enter the EU at reduced or zero-tariff rates and then flow free into Turkey, which, although not in the EU, is in the customs union for goods. Turkish companies don't benefit from reciprocal tariff cuts when exporting to those countries because Ankara is not part of the EU, and it's reported that Ankara, the Turkish Government, therefore started imposing protective tariffs on a number of imports for the EU last year, and concerns were raised about the implications for the UK and Wales, therefore, if we remained in the customs union, outside the EU, in the future. Similarly, The Guardian economic editor stated in April that those who argue that Britain would be better off negotiating its own trade deals have a point, because the EU is not especially interested in liberalising where it's weak but the UK is strong—in this case, in services. That was an interesting angle coming from The Guardian. So, in considering how the Welsh Government will develop international trade in a post-Brexit environment, how will it take into account these practical considerations, as highlighted by academics and others over recent months?

Well, I think the first thing to say is that you're absolutely right in identifying that Turkey actually is in a customs union with the European Union. But I think what's important for us to note is that the relationship that matters most is our relationship with the European Union—60 per cent of our trade in goods is with the European Union. And therefore, what's important is that we understand that any loss in that market, even for a short period of time, would have a hugely damaging effect on our market here in Wales. What is of interest to me is that, actually, one of the leaders in the Tory party leadership election at the moment is suggesting that there is a possibility that we could have a scenario where we don't pay any tariffs during an implementation period. That has been comprehensibly rubbished by the Bank of England and by the European Union, so I think if the Member wants to ask about trade deals in the future, he has to understand that the most important deal is with the European Union, and at the moment, that deal seems a long way away.