Wales to benefit from recent trade deals
Trade deals with India, US and the EU that have seen tariffs on key industries slashed are set to help drive growth in Wales.
- Prime Minister to meet with the First Minister of Wales Eluned Morgan to discuss the benefits of his recent trade deals
- Comes as we’ve nailed three trade deals in as many weeks to deliver growth that is a priority for the Plan for Change
- Delivers job security for workers in Wales and more opportunities for Welsh Industry
Trade deals with India, US and the EU that have seen tariffs on key industries slashed are set to help drive growth in Wales.
These deals will deliver benefits that communities across Wales will feel – supporting job creation, reducing costs and expanding export opportunities.
This means stronger economic growth across Wales – delivering our Plan for Change.
Prime Minister Keir Starmer said:
These trade deals deliver long term security for people in Wales. They will create opportunities for more seamless trade and attract inward investment to grow the economy, making a difference to people’s lives.
These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve livelihoods across Wales.
The Prime Minister will tell the English Mayors and the Leaders from the Devolved Governments at a meeting of the Council of Nations and Regions in London today (Friday 23 May) that his trade deals with India, the United States and the EU will deliver economic growth that will improve people’s lives at home.
He will challenge those in attendance to drive economic growth in their local areas to deliver for working people.
Russell Greenslade, Director, CBI Wales, said:
As an export-led economy, the government’s commitment to free and fair trade will be welcomed by firms across Wales.
Amid ongoing geopolitical uncertainty and economic headwinds, these agreements with the US, India and the EU will reduce existing barriers to trade and provide Welsh firms with a renewed sense of optimism as they look to seize new international opportunities.
Deals like these will be critical to driving growth, creating jobs and raising living standards across our nation.
Over 200 Welsh businesses exported goods worth £226 million to India last year and this could grow even further under the new trade deal.
Welsh farmers will benefit from the India deal with tariffs on lamb reduced from 33% to 0%. Wales has a vibrant creative sector, and the deal provides enhanced copyright protections for producers so they can be confident that works will continue to be protected for at least 60 years.
Welsh food and drink producers will also no longer face huge delays and red tape to export into the EU while some products like Welsh sausages and lamb mince will no longer be blocked. The deal has been welcomed by the Head of Wales at the Federation of Small Businesses and by the National Farmers Union Cymru who highlighted that Wales exports £813m of food and drink a year to the EU - 75% of all exports and more than the UK level of 57%.
Wales is also home to a thriving clean energy sector employing over 58,000 people and generating over £4.8 billion in revenue – this deal will support further development as we gain unprecedented access to India’s procurement market as they transition towards a net zero economy. The sector will also benefit from the new EU deal which agrees cooperate on clean energy and link our schemes for emissions trading - worth up to £3.8 billion a year to our economy in the long run.
Secretary of State for Wales Jo Stevens said:
The trade deals with India, the US and the EU are great news for Welsh consumers, Welsh business, and Welsh jobs.
Taken together these deals mean a huge boost for our key industries, from farming to green energy and the creative sector. We want to grow our economy and create secure well-paid jobs and by unlocking new markets and opportunities we can deliver on that promise.
Our increased trade with India will unlock opportunities for every region in the UK to access the world’s fastest growing economy, including for Wales.
Wales’s steel industry has also been supported by the US trade deal which has eliminated the previous steel tariffs of 25% and our deal with the EU adds further protection for steel by safeguarding steel exports from new EU tariffs.
Under the historic deal reached with the US last week, we have agreed reciprocal market access on beef that will benefit farmers in Wales, will a total UK quota of 13,000 metric tonnes. There will be no weakening of UK food standards on imports.
Business and Trade Secretary Jonathan Reynolds said:
The three landmark deals secured this month with the US, India, and the EU have shown this government is serious about striking the deals that our businesses want and need.
We are delivering billions for the UK economy and wages every year as part of our Plan for Change. For Welsh businesses, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners.
Just this week, the Prime Minister continued to act in Britain’s national interest by confirming a new agreement with the European Union that will deliver on his core mission to grow the economy, create more jobs in Wales, raising living standards and put more money in people’s pockets.
At today’s meeting of the Council of Nations and Regions the Prime Minister will also lead discussions about spreading AI to help working people access the services that they need in their local areas.