Trade with EU continues apace in midst of Brexit
WALES is increasingly trading in goods with the EU despite Brexit uncertainty. Figures published by the Office for National Statistics (ONS) show in 2018 Wales traded £17.7bn worth of goods with EU countries.
That is an increase compared to £17.3bn in 2017 and £15.6bn in 2016.
Of the £17.7bn, £7.2bn was imports, while £10.5bn was exports.
Wales has also increased trade with non-EU countries.
The value of goods traded rose from £13.9bn in 2016 to £16.7bn in 2017 and to £17.8bn in 2018.
The increase in trade with non-EU countries since 2016 is 28%, compared to a 13% increase in trade with EU countries.
Last year Wales exported total goods with a value of around £17bn. Outside the EU, Wales is big net importer at around £11bn a year against £6.6bn in exports.
In 2018, the UK traded £433bn worth of goods with EU countries, making up 53% of trade in goods.
Of this, £170bn was in exports – half of the total value of goods exported last year, and £263bn was imports, 55% of the total.
UK trade in goods with non-EU countries was worth £388.3bn in 2018, of which £169.5bn was exports and £218.8bn was imports.
The figures come amid a further extension of the deadline for the UK leaving the EU.
Prime Minister Boris Johnson accepted the EU’s offer of an extension of the Brexit deadline to January 31.
Once the withdrawal agreement is ratified, the UK can open trade talks with the EU and other countries.
The earliest this could happen is on February 1.
At the moment, under the deal agreed by the former PM Theresa May and followed by Mr Johnson, the UK has until the end of December
2020 to conclude its future relationship negotiations.
If the withdrawal agreement isn’t ratified, or if a new trade deal isn’t struck with the EU by the end of 2020, and the transition period was not extended, trade between the UK and the EU would be conducted on World Trade Organisation terms.
Trade rules would change from those of the European Union – based on its Single Market and Customs Union – to those of the World Trade Organisation (WTO).
Each member of the WTO must grant the same market access to all other members – except developing countries and those that have freetrade agreements.