- Welsh Affairs Committee publishes Brexit and Trade Report.
- Calls for Government to confirm location of inland customs
sites by end of year and to publish contingency plans for goods
arriving at Welsh ports.
- Welcomes trade deal reached with Japan and progress of trade
negotiations with non-EU countries.
The Welsh Affairs Committee has warned there is a significant and
unacceptable risk that neither Holyhead nor Fishguard/Pembroke
will have appropriate inland facilities ready for the full
implementation of new customs processes and checks following
Brexit.
In its latest report, which examines the implications of new
trading relationships for Wales, the Committee also expressed
concern about the readiness and capacity of Welsh ports and
accompanying infrastructure to carry out thousands of new checks
a day. These checks, a consequence of the UK’s new trading
arrangements with the EU resulting from Brexit, would be needed
regardless of whether a deal is reached with the EU or not.
Checks and process are due to be fully implemented from 1 July
2021 following a six-month phase-in period, a move the report
welcomed.
Particular attention is paid to the potential implications for
the Port of Holyhead of a combination of new, and untested, IT
systems and new checks and processes. Holyhead, the second
largest roll-on/roll-off’ port in the UK after Dover, deals with
around 450,000 freight units per year. In case of delays caused
by the new processes, and lacking capacity on site to stack
significant numbers of lorries on site, the port is partly
reliant for its Brexit preparations on the selection and
construction of inland clearance facilities.
The report expresses deep concern that with just months remaining
until full implementation, the decisions on the location of the
inland facility for Holyhead Port and the equivalent facilities
in South-west Wales have yet to be taken. The Committee
recommends that the UK Government publish its contingency
plans for how checks will be conducted on goods arriving at
Holyhead and Fishguard/Pembroke in the event that the inland
facilities are not operational for July. It also
calls for clarity from the UK Government as to whether its
contingency plans include checks at port and detail the measures
it would take to minimise the disruption such a step would
entail.
The Government’s achievement of reaching a free trade agreement
with Japan in October was welcomed by the Committee. They pointed
to the ‘welcome level of consultation between the UK and Welsh
Governments’ during negotiations for the Japan deal as an
approach to build upon in future trade negotiations which
culminated in protected geographical indicators granted to 15
Welsh products. Progress made in trade negotiations with other
non-EU countries and for accession to the CPTPP trading block was
also welcomed by the Committee.
-
, the
Chair of the Welsh Affairs Committee said:
“Whether a deal is reached with the EU or not, there will be new
processes and checks in place for trade between the U.K. and EU.
But, with just two weeks until the end of the transition period,
decisions over key infrastructure in Wales for carrying out these
checks have still not been made and critical IT systems are still
to be fully tested and operational. While the Government has
stepped-up its communications efforts to alert traders to the
imminent changes, there are still too many businesses unaware of
how their trade with the EU may be affected.”
“Wales is far from ready for the end of the Brexit transition
period. We are particularly concerned about the implications of
this for Holyhead, one of the UK’s busiest ports for trade with
the EU. There are significant risks of delays and disruption to
the smooth flow of trade through the port.”
“It is vital that UK and Welsh Governments now work together with
urgency and focus to make the necessary decisions on the location
of facilities for carrying out new checks on goods moving through
Holyhead, Fishguard and Pembroke Dock. Even if decisions are
finalised this month, and planning permission expedited, there is
an unacceptable level of risk that neither North nor South-west
Wales will have appropriate inland facilities ready for the full
introduction of border checks in July 2021. It’s therefore
critical that the UK Government publishes its contingency plans
for how checks will be conducted if neither facility is ready in
time.”
