A Trade Deal with the EU

2. Questions to the Counsel General and Minister for European Transition (in respect of his European transition responsibilities) – in the Senedd on 11 November 2020.

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Photo of Jenny Rathbone Jenny Rathbone Labour

(Translated)

5. What is the Welsh Government's latest assessment of the chances of a trade deal with the EU? OQ55820

Photo of Jeremy Miles Jeremy Miles Labour 2:53, 11 November 2020

A deal is still possible, but both sides now need to demonstrate political movement and flexibility. But even with a deal, there will be long-term damage to the economy and we certainly cannot afford the chaos that would result from leaving transition without a deal in the middle of a global health pandemic.

Photo of Jenny Rathbone Jenny Rathbone Labour 2:54, 11 November 2020

The election of Joe Biden makes it less likely the UK Government can count on the backing of Donald Trump for a go-it-alone strategy, but we saw in the past how difficult it was to negotiate with the United States with the failed transatlantic trade and investment partnership deal, which took over three years and was mainly around our concern that the United States wanted to be able to take over our national health service. Today, obviously we're more concerned with the undermining of our food and animal welfare standards. But I think one of the major barriers now to any deal, it seems, with the EU-27 looks as if it's the internal market Bill, because of the state-aid elements within the internal market Bill, which should be a huge cause for concern for any of the devolved Governments and anybody who is concerned about the future state of the union. I'm sure Joe Biden will spell this out for him, particularly in relation to the Good Friday agreement. But what, if anything, can we do to persuade the UK Government to abandon this very damaging legislation, which almost guarantees 'no deal'?

Photo of Jeremy Miles Jeremy Miles Labour 2:55, 11 November 2020

I thank the Member for her supplementary, and I will take this opportunity of saying how glad I was to see that Joe Biden was elected president with such a resounding result. It's a triumph for internationalism, principle and reason. So, I am very pleased that we're having this discussion in that context. 

She's absolutely right to say that the prospects of a deal with the European Union have been set back by the introduction of the internal market Bill, because it raised the question of trust. And if you're in the middle of negotiating an international agreement, then having one party signal very unequivocally that it is perfectly content to break international agreements is obviously corrosive of trust in those discussions. And I think that has had a material effect on discussions. 

She will have followed, as I have, the discussions in the House of Lords, which have demonstrated a very wide and deep coalition of opposition to the Bill, for the reasons that she gives. And I think we will continue—. We have discussed with peers the approach that the Welsh Government is taking and have advocated that approach, and we will continue to do that. I think a wise Government would respond to that by amending the legislation, in a very great number of ways, by the way. And I urge the UK Government to take the opportunity of responding to such a wide and deep coalition of opposition and taking steps to amend the legislation in the way that her question suggests.