The Economic Impact of Brexit

Part of 1. Questions to the Minister for Economy – in the Senedd at 2:09 pm on 13 July 2022.

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Photo of Vaughan Gething Vaughan Gething Labour 2:09, 13 July 2022

Well, the First Minister has indicated several times in this Chamber the recent evidence on the direct impact that Brexit has had on food costs in any event, the challenges for both import and export for food and drink businesses in the UK in particular, and it's been a regular feature in the conversations around borders and trade that I have had most recently in a rather frustrating conversation with Michael Ellis, the Cabinet Office Minister, and that's about the reality of where we're going with the programme. It means that businesses who want to export from Wales to the island of Ireland, for example, have checks in place on the goods, whereas, actually, goods coming the other way don't at present. That may mean that those goods are cheaper, but it puts our own businesses at a disadvantage.

And one of the challenges that we have is that, having left the European Union, we no longer get the advantage we previously had of having early sight of risks to biosecurity. That means we're more vulnerable, particularly as the destination checks currently taking place are taking place in less than 5 per cent of those goods that are coming in. That means that there is a risk for us in any event. And when we were within the European Union, we still had the ability to introduce additional checks as members as well. So, we're carrying a number of risks, both to biosecurity and, indeed, there's a competitive disadvantage for food and drink businesses in particular in the current arrangements. And I would hope, as I say, that common sense will ultimately prevail to make sure that Welsh businesses are able to export and import on a much more level playing field with colleagues in European countries.