Summary

Securing ’ Future

Transition from the European Union to a new relationship with Europe

Securing Wales’ Future | 1 1 ’s Preface

A majority in Wales voted to leave the European Union (EU) and the has been clear from the outset that this democratic decision must be respected.

We are equally clear that the questions. The Council for intention of helping shape a viable terms of exit must protect Wales’ Economic Renewal provides a and consensual UK negotiating vital interests and should be particular focus on the economic position. This White Paper sets capable of bringing together those and business challenges. More out the broad aims of the Welsh who voted to leave and those who widely, thought about Wales’ Government for those negotiations. voted to remain. We do not believe future is informed by extensive Throughout, the emphasis is that people were persuaded to and active debate across sectors on preserving and promoting vote leave with the intention that such as agriculture, environment, prosperity while recognising the Wales should become worse off Higher Education, the third majority wish to leave the EU. as a result, nor do we believe sector, the creative sector, that this should be an inevitable local government and others. As we face the future many consequence of leaving the EU. questions remain. The Welsh Departing the EU in no sense Government must approach its Decisions taken in the months means that Wales will turn its work in new ways and the UK ahead will define Wales’ economic back on Europe. Continued full itself must adapt and change. and social interests for many and unfettered access to the We believe that the UK’s exit years to come. Exiting the EU Single Market is fundamental from the EU should be conducted presents clear risks which need to our future. Our friends and through constructive negotiation to be managed and mitigated neighbours in Europe will based on mutual respect and and the Welsh Government has continue to be our friends and shared long-term interests a responsibility to preserve and neighbours, and we need to find among European neighbours. develop the country’s prosperity. new ways of working together There will also be opportunities on our common challenges. to think afresh about our policies Equally, Wales is a world-facing The Welsh and programmes, about how nation. We have a long record Government is we work together in a changed of trade and investment with (UK) outside North America, Japan, the determined to protect the EU, and the potential to Middle East and elsewhere. this country’s vital help businesses explore new We embrace the world and its interests and the markets around the world. horizons, and where new trade opportunities open up, we will future prosperity Politicians in Wales have no work with businesses to help of Wales. monopoly on wisdom and our our economy prosper. perspective has been informed by extensive debate, not just This White Paper outlines Wales’ within the National Assembly key strategic interests and for Wales but beyond it. Our priorities as the UK prepares to European Advisory Group draws leave the EU. We are working on individual specialist expertise with the UK Government, and the spectrum of political Executive and opinion as we consider detailed the with the

2 | Securing Wales’ Future 2 Preface by the Leader of Since the vote to leave the European Union, Plaid Cymru has advocated that the priority should be to secure and defend the Welsh national interest, in particular our economic interests.

Plaid Cymru outlined our desire solidifies the view of the involved that withdrawal from the EU for a formal Welsh negotiating parties that Wales should be should precipitate a remodelling position on EU withdrawal; for able to benefit from continued of the governance structures of parties to collaborate on defining participation in the European the UK, a long-held belief within and promoting the Welsh national Single Market. There has been our party. interest; and for Wales to secure movement between the parties as much common ground as involved in terms of agreeing It also progresses the Party possible with the other devolved possible forms which this of Wales’ calls for a more administrations so that there is a continued participation could take, comprehensive international ‘Four Countries’ approach. with agreement being reached policy, as well as our key priority that this could include EEA and/ of retaining and enhancing vital Thanks to significant and or EFTA membership, and that it links between Wales and Ireland. constructive efforts through must avoid tariff barriers. liaison between Plaid Cymru and Just as Plaid Cymru has worked the Welsh Government, these The document welcomes the in the name of Welsh national positions have been advanced, contribution of European workers unity to develop this joint position, and will now become the policy of and migrants to Welsh society and we are confident that the Welsh the government, and the position our economy, and challenges the Government will continue to work of a clear majority of Members of negativity which has been allowed with , Northern Ireland the National Assembly. to dominate political discourse. It and other partners, to identify upholds the principle of freedom common ground, both ahead For Plaid Cymru, this document of movement and is therefore of and during any negotiations. reflects our core principle that consistent with full Single Market Regardless as to how people Wales has a democratic right to participation. shape the kind of EU withdrawal voted in the EU referendum, that takes place. It further sets out a way for Wales there should now be a sense not to lose out financially when of encouragement that Wales Wales’ role should be to influence EU funding ends. The document has a clear and articulate any negotiations which take place, also clarifies that Wales could and position ahead of forthcoming rather than simply accepting that should continue to benefit from a negotiations. Our national EU withdrawal can be carried out range of European programmes interests and needs are clearly without regard to the interests of which are of benefit to our citizens. expressed in this paper, and I Wales, Scotland and Northern have no hesitation in commending Ireland. On the issue of environmental, it to people in Wales. social and workplace regulations, It is therefore of crucial a strong message is sent to the importance that the UK UK Government that these must Government recognises in any not be eroded or discarded in the negotiations that the UK is a multi- name of deregulation or ideology. national state, not a single nation. Crucially for Plaid Cymru, the In promoting the Welsh national document contains agreement Leader of Plaid Cymru interest, this White Paper

Securing Wales’ Future | 3 3 Summary

The White Paper sets out the its negotiating position. In so shows that any significant main issues which we have doing, the UK will be pursuing reduction in access to the Single identified as vital for Wales as outcomes which we firmly believe Market will be damaging, and the UK moves to leave the EU. will be beneficial for the UK as a the greater the reduction, the It has been developed by the whole, as well as for Wales. worse the consequences will be Welsh Government in conjunction in terms of reduced or negative with Plaid Cymru through an There are six key areas which we growth. We believe that full and official Liaison Committee1. The believe need to be addressed unfettered access to the Single views of the European Advisory in negotiations: the Single Market for goods, services Group, appointed by the First Market and international and capital – including our key Minister in summer 20162, trade, migration, finance and agricultural and food products – have played a helpful role in investment, constitutional and is vital for the forward interests developing its content. devolution issues, Wales’ social of Wales and the UK as a whole and environmental protections and we urge the UK Government The Welsh Government will and values and transitional to adopt this as the top priority work constructively with the UK arrangements. for negotiation with the EU. Government as the UK prepares There are various ways in which to exit the EU and transition The Single Market and this might be achieved. These towards a different relationship International Trade might involve UK membership with our European neighbours. The Welsh economy is closely of the European Free Trade Together with Plaid Cymru, the integrated into the EU Single Association (EFTA), of which Welsh Government will speak Market and some two thirds of the UK was a member prior to for Wales to ensure that the identifiable Welsh exports go to joining the EU, and through this terms on which the UK leaves EU countries. Wales’ success continuing to form part of the the EU are not damaging to in attracting foreign direct European Economic Area (EEA); Wales’ interests. In return, we investment over many decades or through a negotiated bespoke expect the UK Government to is largely based on access to arrangement unique to the UK. take full account of the issues the EU market of more than we have identified as vital to 500 million customers. Analysis Wales’ interests in forming

(below) Swansea city at dusk

1 In the Paper, “we” should be taken to refer to both the Welsh Government and Plaid Cymru. 2 http://gov.wales/about/cabinet/cabinetstatements/2016-new/euadvisory/?lang=en Migration is linked to employment. For We acknowledge that a wish students and researchers, we to address concerns arising believe continued free mobility from EU migration was part across Europe is in the best of what stimulated support interests of Wales and the UK for leaving the EU and that as a whole. Linking freedom the UK Government sees of movement to employment migration as a key focus of should be complemented the forthcoming negotiations. by rigorous enforcement of Equally, we recognise the very existing legislation to prevent positive contribution EU migrants exploitation of workers, make to our economy and particularly those in low-wage communities. The rights of EU occupations. migrants already living in Wales to remain should be guaranteed Finance and Investment immediately and all who live here must be treated with equal In budgetary respect. We call upon the EU to give a reciprocal guarantee terms, Wales is a to Welsh and UK citizens living net beneficiary of (above) European Investment Bank in Luxembourg in the EU. We believe that current EU funding for regional Wales will continue to need EU membership, economic development in Wales, migration from EU countries to currently receiving agriculture and the countryside. help sustain our private sector about £680million Significant investment in Wales is economy and public services. stimulated by a number of smaller In our view, the key is to ensure in EU funding EU programmes and we strongly that, apart from students and each year. believe Wales should continue to those who are able to sustain benefit from access to them from themselves independently, Not only is this funding hugely outside the EU. These include: freedom of movement of people important to Wales in terms Horizon 2020, ERASMUS+, of driving economic growth Creative Europe and the Wales- and jobs, it also enables the Ireland Programme. We also set Welsh Government to leverage out why we believe the UK should additional resources from both remain a partner in the European public and private sources. Investment Bank. While the UK Government has largely guaranteed funding for Constitutional and projects agreed prior to 2020, Devolution Issues it is crucial in the longer term Withdrawing from the EU is a that EU funding is replaced major constitutional turning point by a revision to the Block for Wales and the UK as a whole. Grant. During the referendum Powers already devolved to Wales campaign voters in Wales – agriculture, fisheries, regional were assured that leaving the development and environment, EU would not result in Wales for example – will in future be being worse off and it is vital to exercised here without an EU public faith in political process regulatory framework. Similarly, that this promise is honoured. reserved powers which would, in Replacement funding from UK sources must reflect

Securing Wales’ Future | 5 principle, be exercised at UK level devolved settlement in relation to Transitional Arrangements (for example, on international the Bill, then we will do so. It seems increasingly likely that trade or competition) would have negotiating both the terms of potential to impact adversely on Social and Environmental our withdrawal and a workable, devolved policies in Wales. Protections and Values detailed future relationship with The UK has been part of the EU The current inter-governmental the EU may not be achieved for more than 40 years and a machinery will no longer be within the limited timescale set substantial body of legislation fit-for-purpose and new ways of for the Article 50 negotiations. has been developed which working – based on agreements Experience from elsewhere protects Wales’ environment freely entered into by the UK suggests that trade negotiation, and social well-being. Clean Government and the three for example, is necessarily air, water and beaches are all devolved administrations and complex and time-consuming. underpinned by this legislation. subject to independent arbitration The scale of work required to A range of rights and protections – must be developed. The scale adapt our legal, constitutional for workers limiting exploitation of change demands that the UK and institutional structures is in the workplace, including, itself be remodelled to energise a equally complex and likely to for example, the Working Time dynamic and decentralised future require significant development Directive, have resulted in safer based on co-operation, common time. We therefore believe the working environments and purpose, solidarity and workable, UK Government should seek better conditions for employees. more federal, structures. We see agreement, as a matter of high The safety of products sold in preparation for departure from priority within the Article 50 our shops and a range of wider the EU as the starting point for a negotiations, on a transitional consumer protections have detailed debate about reform and phase, after our formal exit accrued from EU legislation. change within the UK. We need from the EU, to avoid the chaos In the short term, the so-called sight of detail on the ‘Great and uncertainty which would Great Repeal Bill will preserve Repeal Bill,’ proposed by the arise from a sudden ‘cliff edge’ existing legislation in domestic UK Government before we can departure. Leaving the EU does law. In leaving the EU, we need develop an informed position not mean leaving Europe and we to be vigilant and insistent that on its implication for devolution believe negotiations should be protections and standards which in Wales. If, after analysis, it is based on good faith and mutual benefit our citizens and the well- necessary to legislate ourselves, neighbourly interest. being of society as a whole are in the National Assembly for not eroded. Wales, in order to protect our

(below) Three Cliffs Bay, Gower

This White Paper been developed jointly by the Welsh Government and Plaid Cymru email: [email protected]

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