The Automotive Sector

Part of 2. Questions to the Counsel General and Minister for European Transition (in respect of his European Transition responsibilities) – in the Senedd at 2:31 pm on 7 October 2020.

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Photo of Jeremy Miles Jeremy Miles Labour 2:31, 7 October 2020

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.