UK’s approach to future EU trade will be damaging to Welsh economy says FM Drakeford

FIRST Minister Mark Drakeford has expressed serious concern that the UK Government’s approach to future trade with the EU will damage the Welsh economy in a rushed bid to get a deal.

The UK Government has published its negotiating mandate for talks on our future relationship with the EU – negotiations which will have serious real-life implications for the Welsh economy.

Boris Johnson has indicated that he could walk away from the talks in June unless there is the “broad outline” of a deal by then.

The UK’s guidelines for the negotiations, which cover trade and other aspects of the future relationship with Brussels, sets the deadline for progress against a backdrop of deep divisions between the two sides over issues including fish, state subsidies and standards.

The Government has set out its plans for the talks ahead of the first round of negotiations on Monday, making clear that it “will not negotiate any arrangements in which the UK does not have control of its own laws and political life”.

It clearly states the UK’s intention to rely on World Trade Organisation terms under an arrangement with the EU similar to Australia’s if progress on a comprehensive deal cannot be made.

Whatever the outcome of the talks, businesses have been warned to expect friction at the border from January 1, 2021 because the UK will not extend the transition period and will therefore be leaving the EU’s single market and customs union.

In the Political Declaration agreed by the Prime Minister and EU last year, the two sides agreed to work towards a deal “encompassing robust commitments to ensure a level playing field”.

The EU’s mandate called for any agreement to use Brussels’ standards as “a reference point” over time – indicating that the UK could be expected to keep aligned with changes to the rules covering state subsidies, environmental standards and workers’ rights in future, something that would breach Mr Johnson’s red lines.

Downing Street insiders indicated Mr Johnson believes the mandate he won at the general election trumps the declaration, which does not have the status of a binding international treaty.

Senior Cabinet minister Michael Gove told MPs: “The UK Government seeks a FTA with robust protections for the environment and labour standards.

“But we do not see why the test of suitability in these areas should be adherence to EU law and submission to EU models of governance.

“The EU does not apply those principles to FTAs with other sovereign nations and they should not apply to a sovereign UK.”

First Minister Mark Drakeford said: “What the UK Government is proposing will damage the Welsh economy and jobs. They are offering a basic, bare bones relationship that lacks ambition and lets down Wales.

“The UK Government has refused to put forward any analysis of the impact of the relationship they want. Not being straight with the public on what this approach will mean for our economy is unacceptable.

“They are rushing to get a deal – any deal – by the end of the year. That political ambition is clearly more important to them than getting a deal that is in the interests of all the nations of the UK.

“The proposals put ideology ahead of people’s livelihoods. The UK Government no longer even pretends that there will be no new barriers to trade. Their proposals will mean more paperwork, more delays, more checks on goods and services we export to EU. And if the negotiations fail, we also risk facing tariffs which would be crippling for our farmers and food sector.