Oral Answers to Questions

Jonathan Edwards Excerpts

Thursday 20th October 2016 Commons Chamber

[Mr Davis]

Actually, it is a good example of the reason why we are taking our time to come to a conclusion on this. [Laughter.] No, these matters have serious implications, whichever way we go with them. Being inside the customs union gives some advantages but cuts off, to some extent, free trade areas around the rest of the world. Being outside the customs union creates some handicaps but opens up those other benefits. That decision is not part of what the Prime Minister has said to the European Union.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

2. What assessment he has made of the potential effect on the economy in Wales of the UK leaving the EU.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

The Government continue to undertake a wide range of analysis covering all parts of the UK to inform the UK’s position for the upcoming negotiation with the European partners. A key part of that understanding is the differences across the UK. The Welsh economy has particular strengths in aerospace, automotive, higher education, electronics, steel and agriculture, for example. It is important that we understand the impacts and the opportunities for all parts of the Welsh economy.

I visited Cardiff on Tuesday this week, when I met the First Minister and the Finance Minister, and I am grateful to them for giving me time on their Budget day. I also met university vice-chancellors in a separate meeting. Wales has a particular reliance on a range of EU funding—more so than much of the rest of the UK—on which the Chancellor has already offered a number of guarantees.

[Jonathan Edwards]

As the Secretary of State will be aware, the Welsh economy produces a substantial trade surplus of more than £5 billion per annum as a result of our membership of the single market, the customs union and the associated 53 international global trade deals. The UK as a whole, on the other hand, has a massive deficit of nearly £120 billion. Does the Secretary of State acknowledge, therefore, that the Government’s favoured policy of leaving the single market, the customs union and the associated 53 international global trade deals—a hard Brexit—will have a significant effect on Wales?

[Mr Davis]

No, because the Government’s aim is to maintain the freest and most barrier-free access to the single market that we can obtain. That is the aim, and parts of the kingdom such as Wales are very much at the forefront of our thoughts in that strategy.