MS, Cabinet Secretary for
Economy, Energy and Planning: I welcome the announcement made by
the UK government on 8 May 2025 that it has concluded
negotiations on the general terms for a
UK-US Economic Prosperity Deal. The deal
contains a commitment to remove tariffs on steel and reduce
tariffs on automotive products, both of which will provide a
welcome boost for our trade of these goods.
I understand that the deal is in response to the series of
‘reciprocal' and other tariffs that were announced by the US in
the last few months. Such tariffs have the potential to
significantly impact our businesses, and these concerns were
reinforced to me by my Tariff and Intelligence Response Group.
The United States represents an important market for Wales, and
we have a strong trading relationship with around 1,066 Welsh
businesses exporting goods to the US and 1,220 businesses
importing goods from the US in 2024[1]. Goods
trade between the United States and Wales was valued at £6.4bn in
2024. This makes the US our 2nd largest export market
(accounting for around 13.5% of goods exports) and largest import
market (accounting for around 20.3% of goods imports). Latest
services trade data for 2022 estimate the value of services trade
with the US to be around £3.2bn.
The Welsh Government recognises the benefits of international
trade, and this announcement follows the welcome securing of the
UK-India Free Trade Agreement and lays the foundations for future
negotiations with the US. Combined, these two agreements can have
the potential to unlock global trading opportunities for Welsh
businesses.
As we look ahead to the Investment Summit in December, it is
important to show that Wales is open for business. Trade deals
with the US and India are important to help us communicate that
message.
We understand that the final agreement is still being negotiated,
and we will continue to work with the UK government as
negotiations progress to ensure that Welsh interests are
protected. We must ensure that the high animal welfare and food
standards we have here in Wales are fundamentally protected and
that any goods and products that are subject to reciprocal access
meet our own high standards. My officials will rapidly review the
details of the agreement once available.
[1] This represents
around 33.4% of 3,188 Welsh businesses that exported in 2024 and
10.4% of the 11,693 Welsh businesses that imported.
