4. Statement by the Minister for Economy and Transport: Preparing the economy in Wales for a 'no deal' Brexit

Part of the debate – in the Senedd at 3:51 pm on 1 October 2019.

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Photo of Mick Antoniw Mick Antoniw Labour 3:51, 1 October 2019

Minister, there are a few questions I'd like to ask with regard to the issue of trade, not just Welsh trade but UK trade, and the relationship with international trade. Now, during the unlawful prorogation of Parliament—and, for those who doubt it, the Supreme Court is the supreme legal body; if they determine it was unlawful, then that is the law of the land, that is what the rule of law determines—. So, during the unlawful prorogation of Parliament, of course, a lot of legislation fell, including the Trade Bill and a number of other pieces of legislation that we've been looking at in our various committees, but the Trade Bill being a particularly important one, and particularly relevant to your portfolio and also to the economic interests that we have within Wales. 

Now if, as Lady Justice Hale said, the prorogation Order was as a blank sheet of paper then, presumably, the Trade Bill still exists. But the problem is we have a Government that has no intention at the moment of actually proceeding with that Bill. Now, of course, we have major concerns ourselves over the content of that Bill, particularly with the way in which it might seek to override devolved powers within Wales, particularly issues around trade, environmental issues and, in fact, the national health service. Those points have been made during the Joint Ministerial Council meetings and have been the subject of much, much discussion. But, of course, the fact of the matter is that there is no Trade Bill proceeding at the moment, and, of course, the real concern is that, if we were to crash out without a deal, and we suddenly crash out of the European Union, what we are left with is the exercise of Government by royal prerogative, which means trade deals can be agreed with very little parliamentary scrutiny whatsoever, but can completely bypass this Chamber, can bypass the Assembly and the devolved Governments of the UK.

Now, I remember, during the referendum—I remember UKIP campaigners standing up with placards saying, 'No TTIP'. Of course, we were very concerned about the issue of the transatlantic trade and investment partnership within this Chamber, and, of course, the EU was as well—all 28 nations were—because, at the moment, negotiations are still going on with the US, but are certainly very slow because of the insistence in terms of environmental and food standards. But, of course, what we are now being told by Nigel Farage and by the Brexit Party, and by the far right generally, is that the way forward, of course, is going to be this incredible trade deal with the United States. Well, of course, at the moment, the issue of the United States is that we have been given absolutely no guarantees by the UK Government that, for example, our national health service in Wales will actually be protected. There is no exemption for the NHS, and we will all recall that Theresa May actually refused to give anything in writing of such an exemption.

So, we need to look at what are the US negotiating objectives. Well, just look at a few of them: on pharmaceuticals, provide full market access for US products; on state-owned enterprises—for example, the national health service—accord non-discriminatory treatment with respect to the purchase and sale of goods and services; increase opportunities for US firms to sell US products and services to the UK; and establish a dispute settlement mechanism—which will almost certainly be based on US legislative sovereignty. Effectively, not only does our NHS within Wales suddenly become subject to—by royal prerogative—trade agreements by Boris Johnson with the US, which enables direct intervention into our own Welsh health service and the UK health service—. And what we all fear happening is the actual sell-off and the privatisation of the health service, which is a key jewel that the US industries have been aiming for. And that's why, when we had the recent Labour Party conference, this was the comment—which I agree with—that Jeremy Corbyn made. He said:

'That’s why a no-deal Brexit is really a Trump-deal Brexit. That would be the opposite of taking back control. It would be handing our country’s future to the US president and his America First policy. Of course, Trump is delighted to have a compliant British prime minister in his back pocket. A Trump-deal Brexit would mean US corporations getting the green light for a comprehensive takeover of our public services.'

So, I just have a couple of questions to you, Minister, on this: what is the current state of the trade deal? What negotiations, what contacts, have you had with the UK Government with regard to Welsh interests? Secondly, if the Trade Bill is, in fact, live, what are the consequences of leaving the EU without a deal for international trade? Thirdly, without legislation, would the UK Government be able to trample over the interests of Wales? Fourthly, what would be the level of parliamentary scrutiny in the current climate? And, fifthly, what guarantees has the Welsh Government had to protect the national health service in Wales from a Boris Johnson UK-US trade deal?