1. What discussions has the Counsel General had about the impact of Brexit on the automotive sector in Wales? OQ55659

The Welsh Government is in regular discussion with the automotive sector regarding the potential impact of European Union exit. The UK Government's approach to the negotiations risks significant new barriers to trade being introduced. I have repeatedly made the case to the UK Government they must prioritise a deal that protects highly regulated manufacturing sectors in Wales, including the automotive sector.

Thank you, Minister. The recent letter from Lord Frost to car manufacturers, ruling out any third-country cumulations as part of the trade deal, is a hugely concerning development. The sector has already warned of the devastating impact of a potential 'no deal' endpoint, and now it appears they are facing being cut out of any deal that might be possible, as the UK Government pursues other goals. Clearly, car manufacturers are being offered up as a sacrificial lamb by the UK Government, as it flails around for a last-minute deal that is politically palatable to its base support. Will you make the strongest possible case to UK Ministers to immediately put this industry back on the priority list in negotiations, where it should always have been?

Let me say I completely share the Member's concerns as she's outlined them. And when I read about the letter, which effectively confirmed the UK Government wouldn't insist upon the rules of origin, I was bemused. The UK Government seems more than capable of insisting upon other aspects of its negotiating position, including, for example, sacrificing the possibility of a generous trade deal in defence of the fisheries sector, which, whilst we don't want to see any sector suffering, is a significantly smaller contributor to economic well-being in Wales and across the UK than the automotive sector, which in Wales alone employs around 10,000 people. As she says, ambitious cumulation arrangements are absolutely vital. And even if the UK Government was able to secure a zero-tariff, zero-quota deal with the EU, if it hasn't got those cumulation arrangements in it, Welsh goods will still end up paying significant tariffs due to those rules of origin obstacles. I've made the case to the UK Government many times in relation to this question, and I've repeatedly raised that point with the UK Government around rules of origin and cumulation specifically. I wrote on 29 June, when, at that point, the UK Government was describing its objectives in terms of rules of origin quite ambitiously, and we would support that. But there is no point describing ambition if you're not prepared to deliver it in a negotiation.