The Welsh Government’s role in international trade policy is to engage with the UK government to make sure that the UK’s trade policy represents the whole of the UK’s interests.
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Introduction
Following the UK’s exit from the European Union, the UK government has embarked on a number of negotiations for free trade agreements (FTAs), as well as taking an independent seat at the World Trade Organisation (WTO). The Welsh Government’s role in negotiations is to promote Welsh interests so that the UK government negotiates agreements that create opportunities which benefit Wales, align to our values, and do not undermine our own domestic policy.
The Welsh Parliament’s Economy, Trade, and Rural Affairs Committee (on SENEDD.CYMRU) scrutinises the Welsh Government on international trade matters.
Welsh Government trade priorities
Only the UK government can enter the whole of the United Kingdom into trade deals. However, Welsh Ministers have the power to make representations to the UK government on the UK's trade policy and the Senedd has competence to pass laws relating to the observation and implementation of international obligations. Trade policy often includes many devolved areas, such as the environment, health, procurement and Sanitary and Phyto-Sanitary rules.
The Welsh Government’s role is to represent the interests of Welsh consumers and businesses in the UK’s broader trade policy, as well as providing an understanding of Welsh domestic policy. We believe the financial benefits of trade deals should not undermine our high environmental and labour market standards (including food standards, and standards relating to animal welfare) nor our commitment to combating climate change. Our approach to trade policy is underpinned by our ambition to increase prosperity in Wales, our values, our wider commitments to sustainability and our responsibilities through the Well-being of Future Generations Act. This includes growing our economy sustainably, enhancing exports and attracting inward investment; acting as a responsible nation on the global stage; respecting and protecting human rights; taking action to respond to the global climate emergency and safeguarding our valued public services. In July 2024, the Welsh Government published our approach to trade policy paper:
Trade Policy Advisory Group
The Trade Policy Advisory Group (TPAG) advises the Welsh Government on trade policy matters. Minutes of the TPAG meetings are published on GOV.WALES.
The Trade Policy Advisory Group provides expert advice to the Cabinet Secretary for Economy, Energy and Planning and senior Welsh Government officials on trade policy matters and helps shape the Welsh Government position. The group does not cover operational issues, for example matters relating to export support. The group meets as required, but is expected to meet at least 3 times a year.
Membership of TPAG is made up of 10 to 15 individuals able to provide views from across business communities, civil society and trade unions from across Wales. The group has a core membership with additional members co-opted to attend as needed depending on the matters under discussion. Details of the current membership is available at the TPAG website:
Welsh Government and the World Trade Organisation
The World Trade Organisation (WTO) is based in Geneva and provides a forum for members to discuss liberalising trade, negotiations for multilateral agreements and provides a forum to discuss trade disputes.
At the heart of the WTO is a set of legal rules for international trade that all WTO members must follow. The UK’s seat at the WTO reflects all 4 nations of the UK. The Welsh Government works closely with the UK government to ensure that obligations under WTO multilateral agreements, which form the basis for the legal rules for international trade are met.
Trade remedies
Trade remedies (also known as trade defence instruments), are measures put in place to help protect UK businesses from unfair imports.
The Trade Remedies Authority
The Trade Remedies Authority (TRA) is the independent arm’s length body now responsible for defending the UK against unfair international trade practices. The TRA carries out investigations at the request of businesses or government to determine whether trade remedies on goods, are needed to prevent injury to UK businesses caused by unfair dumping, foreign subsidies, or surges in imports.
It is vital that businesses, especially SMEs, become familiar with both trade remedies and the TRA, to address unfair competition as a result of international trading practices.
The Trade Remedies Authority on GOV.UK
Export support
The Welsh Government has support for anyone looking to export and take advantage of international trade and the benefits of free trade agreements.
UK – European Union relationship
The EU remains our most important trading partner. We engage with the UK government on how the UK's trading relationship with the EU could be improved, including through the implementation and future implementation review of the UK EU Trade and Co-operation Agreement (TCA).
Welsh Government perspectives on UK free trade agreements
The Welsh Government carries out assessments of each FTA the UK enters into and considers the potential effect of these agreements on matters for which the Welsh Government has devolved responsibility, which are published below.