Sectors ‘cautiously welcome’ new UK-EU agreement
Sectors ‘cautiously welcome’ new UK-EU agreement
Leaders in several major sectors have cautiously welcomed a significant new agreement between the UK Government and the European Union.
Downing Street has billed the deal, announced yesterday, as one that will “support British businesses, back British jobs, and put more money in people’s pockets.”
It is hoped the package will help make food cheaper, slash red tape, open up access to the EU market, and add nearly £9 billion to the UK economy by 2040.
In a statement, the UK Government said: “The Prime Minister is clear that bringing down migration remains an absolute priority for him;” but these policies have raised concerns in sectors with a shortage of staff and that rely on migration to fill vacancies.
Josh Brunsdon from Network Recruitment Wales, a healthcare recruitment firm operating across the country, told us the sector would “massively struggle” if the level of net migration were to fall significantly.
He said: “The Labour government going forward seems to be quite restrictive on people coming to the UK to work. We’ve got a lot of experience with the healthcare sector. It’s a sector that’s massively reliant on immigration and people coming here to work.
We’ve already got a massive shortfall in the amount of people that we can train for this sector and it is heavily reliant on immigration and people coming here to work. It is a worrying time really.”
Businessin Wales has heard those concerns echoed by leaders in the hospitality and social care sectors in recent days.
The deal is also expected to make it easier for food and drink to be imported and exported by reducing the red tape that has placed burdens on businesses and led to lengthy lorry queues at the border — a move that could be seen as a boost for the agriculture industry.
Responding to the outcome of the summit, NFU Cymru President Aled Jones said: “For some time we have been calling on government to pursue a better relationship with the EU, with the aim of reducing trade costs and friction.
Securing an ambitious Sanitary and Phytosanitary Measures (SPS) agreement with the EU is one of the ways which will help to reduce friction at the border, and indeed that was something we called for in our general election manifesto of this time last year.
“I am pleased that the UK Government has clearly listened to these concerns. With the scope to remove Export Health Certificates and cumbersome controls at the border, this deal will deliver many benefits for agri-food exports to the EU.
“Since 1st January 2021, the EU has applied third-country customs and border controls to UK agri-food exports, including documentary and physical checks, with UK exporters of products of animal origin including meat and dairy, needing vets to inspect individual export consignments and sign Export Health Certificates.
“If we consider the volume of products moving into the EU from the UK since 2019, then these show a significant decline. Exports of meat and meat preparations have reduced by 33%, whilst dairy products and eggs have fallen by 20%.
“Although there are multiple contributing factors to these drops, new trade frictions under the post-Brexit EU-UK trade relationship are likely to be an important driver of these falls, and that is why we have to do what we reasonably can to reduce and dismantle these barriers to trade.
“Welsh food and drink exports to the EU were worth £813m in 2023, with meat and meat products accounting for £280m of this, and compared to the rest of the UK, Wales has been and remains more reliant on the EU as an export destination, with 75% of our food and drink going to the EU compared to 57% of food and drink exports from the UK. Today’s news is therefore of particular relevance to Welsh farmers.”
Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning, said: “Outlining a renewed approach to UK-EU relations and new opportunities for enhanced security, safety, and economic prosperity for citizens and businesses on both sides of the Channel.”
She told the Senedd in a written statement: “Wales is, and will always be, a proudly outward-looking European nation. The EU remains Wales’ most significant trading partner and the largest source of inward investment. Our overseas network in Europe plays a vital role in supporting trade and investment and in delivering our commitment to meaningful European engagement.
“We welcomed the UK Government’s commitment to re-set relations with the EU and we have been very clear about the Welsh Government’s priorities. We have used the intergovernmental machinery to engage productively.
We therefore welcome today’s announcement following the EU-UK Summit, outlining a renewed approach to UK-EU relations and new opportunities for enhanced security, safety, and economic prosperity for citizens and businesses on both sides of the Channel.
“The Welsh Government was clear that securing an agreement with the EU to reduce trade barriers in agriculture, food and drink was a priority. We welcome today’s announcement on Sanitary and Phytosanitary Standards. Such an agreement could significantly benefit our agricultural, food, and drink sectors.
“Welsh produce is among the highest quality available, and we will work closely with the UK Government to ensure Welsh priorities are fully represented in ongoing negotiations. We will continue to push the UK Government to ensure the final agreement allows Live Bivalve Molluscs from Welsh waters to resume trade to the EU.”
The leader of the Welsh Conservatives in the Senedd, Darren Millar MS, said: “The Prime Minister’s new deal with the EU isn’t a reset, it’s a retreat.
“Free movement is back, taxpayer payments to the EU are back, we are set to become rule takers while not being rule makers, and our fishing industry has been betrayed.
“Labour’s First Minister has once again been side-lined by Sir Keir Starmer and the Secretary of State for Wales is invisible. The Conservatives are clear, we will work to reverse this surrender at the earliest opportunity.”
Plaid Cymru leader Rhun ap Iorwerth said: “Today’s summit was a critical opportunity to begin repairing the UK’s broken relationship with Europe.
“If Keir Starmer is serious about his government’s priority of growing the economy, he must seize the opportunity to remove trade barriers with our largest neighbouring market by committing to re-join the Single Market and Customs Union.
“This is the most effective way to reverse the damage inflicted on Welsh communities by Brexit, and his government have thus far failed to use all the tools at their disposal to address this damage.
If Starmer is serious about resetting the UK’s relationship with Europe, he must heed Plaid Cymru’s calls and grasp at the opportunity to join the Single Market and Customs Union to protect the Welsh economy.”
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