WALES 'CAN'T AFFORD TO LEAVE THE EU WITHOUT A CLEAR, WELL-PLANNED DEAL' FOR WHOLE UK
EVERYONE in Wales should speak up against the UK Government’s refusal to seek an extension to the EU transition period because it could be disastrous for the Welsh economy, it has been claimed.
Cabinet Office Minister Michael Gove formally told the EU on Friday that the UK would not ask for a delay despite concerns that its departure would compound the economic chaos inflicted by the pandemic.
The group Wales for Europe has called on Boris Johnson to think again after he rejected calls from First Minister Mark Drakeford and Scotland’s First Minister Nicola Sturgeon not to take the UK out of the European single market and customs union while the economy copes with the impact of the coronavirus.
In a statement, Wales for Europe said: “We deeply regret that the UK Government is putting ideology ahead of the national interest and the country’s health in refusing to seek an extension to the transition period while we fight the Covid-19 crisis.
“We call on the government to reconsider before the June 30 deadline. This is the only responsible action for any UK government to take in the light of the Covid-19 crisis.
“We also call on the people of Wales who are concerned about their future – from politicians to pensioners, students to small business owners, farmers to families – to speak up against a rushed deal that is not in our social or economic interest.
“The UK, and Wales in particular, cannot afford to leave the EU without a clear, well-planned deal that takes every part of the UK into account. Now that we face the damage and uncertainty of coronavirus, we can afford it even less.
“Extending the transition period to allow the EU and the UK time to prioritise the life and death fight against coronavirus would be the right course of action for any responsible government.
“The First Ministers of Wales and Scotland, Mark Drakeford and Nicola Sturgeon, in a joint letter to the Prime Minister have stated that, in the current circumstances, ‘exiting the transition period at the end of the year would be extraordinarily reckless’.
“We agree. There is too much at stake.
“It is unacceptable that the UK Government should have dismissed their request out of hand.”
Wales for Europe said Boris Johnson’s government could choose to gain more time, but was refusing to do so: “Leaving the EU with no deal would be disastrous. But just avoiding ‘no deal’ is not good enough. A deal that does not protect the lives and livelihoods of the people of Wales is not good enough,” the group said.
“A ‘bare bones’ deal that allows the erosion of our protections, rights and standards over time is not good enough.
“A deal that piles further hardship on top of the suffering caused by the Covid crisis is not good enough.
“Even if Brexit cannot be averted, there are still choices to be made, still much to fight for in the form it takes. We need time to get it as right as can be.”
Earlier this year a report from the United Nations Conference on Trade and Development (UNCTAD) estimated that non-tariff measures (NTMs) could cause major fractures in post-Brexit trade relations between the UK and the EU, knocking up to $32bn, or 14%, off of UK exports to the EU.
Potential losses under a “no deal” Brexit from tariffs are estimated at between $11.4bn and $16bn or 5-7% of current exports.
The study also projects that even if a “standard” free trade agreement were to be signed by the parties, the UK’s exports could still drop by 9%.
The report said the losses would deal a major blow to the UK’s economy, as the EU market accounts for 46% of the UK’s exports. Mounting trade costs due to non-tariff measures and potentially rising tariffs would more than double the adverse economic effects of Brexit for the UK, the EU and developing countries, the study noted.
“EU membership has its advantages to deal with non-tariff measures that even the most comprehensive agreement cannot replicate,” said UNCTAD’s director of international trade, Pamela Coke-Hamilton.
Meanwhile a new poll said that more than half of people in Britain support an extension to the Brexit transition period.
Cabinet Office minister Michael Gove formally told the EU on Friday that the UK would not ask for a delay despite concerns that its departure would compound the economic chaos inflicted by the pandemic.
A survey from the Health Foundation indicated public support for an extension to the transition period, to allow the government to focus on Covid-19, across two sample groups.
Among the first sample, who were told that the transition period for leaving the EU would end on December 31, 54% said the government should request an extension, while 40% said it should not.
The second sample received additional information on potential delays to the supply of medicines and medicinal products in the event of a no-deal Brexit, and among this sample, the proportion thinking the transition period should extend increased to 65%, with 31% saying it should not extend.
Overall, people aged 18-24 were most likely to support an extension (85%).