Brexit clock ticks louder every day
LAST week we saw the most drastic of lockdown restrictions lifted in Wales. People are now allowed to travel further than five miles from their homes, many of our beauty spots are reopening and, from this week, self-catering accommodation is also open again.
For many that is excellent news – those deprived of being able to go for a walk in the countryside can now legally travel to beauty spots again, stay in holiday lets, access the beach and, if you are the owner of holiday accommodation, then this is also good news for the business.
Things are almost back to normal and we hope that the big wheels of the economy will now start turning again.
However, whilst we have been keeping a close eye on the damage the coronavirus pandemic has done to not just our economy, but the world economy, there is another problem looming in the background.
The Brexit clock is ticking louder every day and signs of any sort of agreement with the EU are only slight whispers in the distance.
The FUW is not alone in pointing out the harsh consequences our economy would be faced with should a positive deal with our closest trading partners in the EU not be reached.
Around two thirds of identifiable Welsh exports go to European Union (EU) Member States and Welsh agriculture is particularly dependent on such exports for its economic viability.
Any failure to enter a close trading agreement with the EU after the current EU Withdrawal Period would therefore be catastrophic for Wales and its farmers.
We have long argued and highlighted that the damage from reverting to basic WTO rules, which would be the case in a no-deal scenario, would be disastrous.
A recent study by ‘UK In a Changing Europe’ suggests that reverting to basic WTO terms would lower GDP by 8.1% over 10 years.
This would be in addition to the impact of Covid-19, which has caused the economy to shrink by a quarter.
As such, the Union believes that the UK Government and EU should agree an extension to the Withdrawal Period beyond the current December 31 allowing more time for further negotiations.
We need time to recover from the damage coronavirus has caused and there is no doubt in our mind that if we don’t get a closely aligned trading agreement with the EU, our family farms, rural communities and the economy will suffer.