2. Questions to the Counsel General and Minister for European Transition (in respect of his European Transition responsibilities) – in the Senedd on 3 March 2021.
1. What is the Welsh Government's latest assessment of the impact of the EU-UK trade and co-operation agreement on the south Wales Valleys? OQ56362
I recently published an analysis of the implications of the trade and co-operation agreement. The new relationship with the European Union negotiated by the United Kingdom Government disadvantages our businesses, limits the rights of our citizens to live and work abroad, and may make it more difficult to recruit workers for our essential services, and threatens investment in our communities.
Thank you for that answer, Minister. So, would you therefore agree that Boris Johnson's boast about his Brexit deal involving no tariffs, quotas or non-tariff barriers is now at odds with the experience of small manufacturing businesses in the Valleys, and what used to be as simple as trading with, say, Bristol or Birmingham is now more complicated than trading with Japan or Canada? Minister, I've today launched a survey of local firms in my constituency to gather more detailed evidence. And while it may still be too early to know the final outcome, would you agree that the new trading arrangements are currently acting as a drag on the economy of our south Wales Valleys?
Llywydd, may I say, I saw online earlier today the launch by Dawn Bowden of this survey? And I think it's an example of exactly the kind of engagement with businesses in constituencies that I think is essential as a result of leaving the transition period. So, I commend that initiative very strongly. And I agree with Dawn Bowden that the conditions for our businesses have changed radically at the end of December, and it'll continue to have, I'm afraid, a significant negative impact, acting, in the way that Dawn Bowden was saying, as a drag on some of our economies, including in the south Wales Valleys. Whilst the agreement does claim to provide zero-tariff and zero-quota arrangements, this is of course subject to products being able to meet other non-tariff barriers around rules of origin and to account for VAT, in a way that we are already seeing is causing significant challenges for many of our exporters. Many products can now no longer be exported at all to the EU, including in certain areas of food production. So, I do absolutely think that what we will find—and I fear what she will find from her survey—is that there will be very real-world implications for the economy and for businesses, and, crucially, for people's jobs and livelihoods.