Part of 4. Questions to the Counsel General and Minister for European Transition (in respect of his European Transition Minister responsibilities) – in the Senedd at 1:00 pm on 15 July 2020.
Well, without a free trade agreement that covers substantially all trade in products originating in the UK or the EU, then the UK and the EU would be trading on WTO terms. And the most-favoured-nation principle, which he mentioned in his supplementary question, means that WTO members can't normally discriminate between trading partners. There are some measures—some safeguarding measures—on imports of certain steel products, which will remain in place. But once the UK is fully outside the EU, and if there isn't a tariff-free trade deal, this will also have an impact on exports into the EU of steel from the UK. And the effect there of tariff-rate quotas could be very, very significant, and very significantly damaging for Welsh and UK steel. We support the steel industry in its aim for the UK to secure a comprehensive free trade agreement after we leave the transition period, and we're very, very concerned at some of the estimates coming out of UK Steel about the adverse impact on the sector in additional costs if that isn't successfully concluded.