Thin Deal Better Than No-Deal – First Minister
Welsh Government Responds to post-Brexit trade deal
Last updated 24th Dec 2020
A post-Brexit trade deal has been agreed by the UK and the EU. Four and a half years after the UK voted to leave, a "fair and balanced" agreement has been reached, according to European Commission president Ursula von der Leyen.
Downing Street says the UK will be taking back control of its money, borders, laws, trade and fishing waters.
There will be zero tariffs on goods passing in either direction.
The agreement covers business worth 668 billion pounds in 2019 - making it the biggest bilateral trade deal signed by either side.
The government claims all its red lines about returning sovereignty have been met.
Boris Johnson greeted the news by tweeting a picture of himself with his thumbs up.
The EU's chief negotiator, Michel Barnier, says today is a "day of relief" but "tainted with sadness".
The Welsh Government has re-confirmed its long-standing position that any deal would be better than no deal.
First Minister Mark Drakeford said: “Clearly, we need to receive a copy of the draft Treaty and analyse its terms before commenting in detail.
“But at every stage of the negotiations we have argued for a deal which would allow us to maintain the closest possible relationship with the EU. The evidence tells us this is the way to protect the economy and jobs.
“Faced with a binary choice between no deal and this – indeed any deal – we would prefer a deal.
“However it is appalling that it has taken until a week before we leave the transition period to give the first indication of the terms on which we will trade with our most important trading partner. This will only add to the enormous challenges facing our businesses.
“And while we don’t have any of the detail we know this deal is not the one we would have negotiated – after 31 December, Welsh businesses will still face major new barriers to trade; Welsh citizens will no longer be able to travel freely in Europe; and there will be little in it for service sector businesses.
“Even so, this deal is better than the catastrophe which would have been a no-deal. It means we have preserved our relationship with our nearest and most important trading partners. It provides a platform from which better arrangements can be negotiated in the future.
“The Welsh Government will continue to work with all partners, businesses, communities and people across Wales to prepare for and help navigate the end of the transition period and the new relationship with the EU.”
Paul Davies, Leader of the Opposition in the Welsh Parliament, said: “The news this afternoon ends years of discussions over the UK’s future with the EU and I’m delighted that the UK Government has been able to secure a deal.
“Crucially, this means that we can add the EU to the list of nearly 60 trade deals that have been secured around the World, which come into place as we enter the New Year, enabling the UK to start our new journey as a strong independent nation.
“I have no doubt, that despite the challenges of Covid-19, across the UK, and especially in Wales, people and businesses will take up the opportunities that these deals provide, helping Welsh businesses to grow and kick start the Welsh economy.”
FSB Wales Policy Chair Ben Francis said: “After such a torrid year, and during such a disrupted festive trading season, it’s a huge relief to see negotiators finally strike a deal.
“The work of looking through the detail of the agreement to map out exactly what it means for the small firms that make-up 99% of our business community now begins.
“As well as going through the terms of access to each other’s markets, we are keen to see the Small Business Chapter that FSB has championed and encouraged both sides to include.
“Given the huge historic and future importance of EU markets to smaller Welsh exporters, this will be a relief and welcomed by those businesses which are also dealing with the huge pressures of Coronavirus.
“What we need from here is tangible, targeted support, including £3,000 transition vouchers that small firms can spend on the training and advice required to navigate a new trading relationship. We also need to see clear and demonstrable joining of Welsh and UK Government efforts to support smaller businesses to adapt to this new relationship with our biggest export market.”
Secretary of State for Wales Simon Hart said: “We have agreed a deal with the EU which is good for Wales and the rest of the UK and which delivers on the outcome of the 2016 referendum.
“Our deal provides Welsh businesses with the access they need to the EU’s market and creates a new relationship between the UK and the EU based on friendly cooperation between equals.
“Wales has a bright future outside the EU and the new opportunities this deal offers to people and businesses are the result of Wales’ integral place in the United Kingdom.”