Internal UK trade market vital for Wales
THE value of Welsh exports and imports to and from other nations of the UK has been revealed.
According to the Office for the Internal Market (OIM) – part of the Competitions and Markets Authority – Wales annually exports £26bn to England, Scotland and Northern Ireland, and imports £27bn.
All four UK nations are heavily reliant on services, which make up at least 70% of their economies.
However, there are some differences between nations. For example, manufacturing contributes relatively more to the economies of Wales and Northern Ireland, while professional and technical activities and financial services contribute relatively more to the economies of England and Scotland.
Intra-UK exports are worth at least £190bn per year, representing over a quarter of all UK exports.
In contrast to England, Scotland, Wales and Northern Ireland, trade more with the rest of the UK than with the EU or the rest of the world. They are also net importers within the UK, purchasing more from other UK nations than they sell to them. In contrast, England is a net exporter to the other UK nations.
Of the devolved nations, Scotland has the greatest amount of trade with the rest of the UK with £66bn of imports and £52bn of exports. Figures for Northern Ireland show £13bn of imports and £11bn of exports.
In relative terms, Scotland, Wales and Northern Ireland have broadly similar trade patterns with the rest of the UK. Some 66% of Scotland’s imports and 60% of exports are from and to other UK nations. For Northern Ireland and Wales, imports from the rest of the UK are 63% and 58% of total imports respectively, with sales to the rest of the UK accounting for around half of their exports.
Almost 40% of Northern Ireland’s and Wales’ sales to the rest of the UK were in manufactured goods, reflecting the importance of manufacturing to these economies
A fifth (20%) of Scotland’s and 15% of Wales’ sales to the rest of the UK were in primary sector goods and utilities, reflecting the importance of Scotland’s oil and gas industry and Wales’s agricultural sector
The OIM said it has found no evidence of substantial new regulatory differences emerging between the four administrations since the UK left the EU. However, it said this is not unexpected at this stage and differences might appear over time as governments develop and implement their programmes.
The OIM has identified some sectors where some regulatory differences may be more likely, including the environment, energy use, agriculture, animal welfare, food, drink and health, and some safety-related matters.
The Welsh Government has taken legal action against the post-EU internal market regime for the UK, which it argues is an assault on devolution.
However, last month the Court of Appeal dismissed its case challenging the UK Internal Market Act.
The Court of Appeal upheld the earlier decision of the High Court that the case was brought prematurely. It effectively said that it can only make a decision when there is specific Senedd legislation whose potential effect is said to be diminished by the Act.
The Welsh Government is seeking permission for an appeal to the Supreme Court.