Since 2021, UK-EU relations are based on several agreements.<\/p>\n
The main treaty is the Trade and Cooperation Agreement (TCA)<\/strong><\/a>. Its 2,500-plus pages govern a multitude of important aspects of everyday life and affect many more. Ahead of its first five year implementation review, due by 2026, four Senedd committees decided to work together to find out about Wales\u2019 first four years under the TCA. The four committees who took part were:<\/p>\n The Welsh Government\u2019s Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans MS, gave evidence to the four committees. The UK Government was invited to give evidence but declined.<\/p>\n This article explains the TCA and summarises the committees\u2019 report<\/strong><\/a>. \u00a0<\/p>\n Basics<\/p>\n Eight basis for cooperation and five essential elements lay the foundation for UK-EU cooperation \u2013 examples include the fight against climate change (basis for cooperation) and respect for human rights (essential element). These are important features that, if breached, can lead to the TCA\u2019s termination.\u00a0<\/p>\n Specific sections cover devolved and reserved matters<\/strong><\/a> – trade, aviation, road transport, social security, visas for short-term visitors, fisheries, law enforcement, judicial cooperation, health and cyber security and the UK\u2019s participation in four EU programmes, including Horizon Europe, Copernicus and two nuclear research programmes. \u00a0\u00a0<\/p>\n The TCA establishes over 30 joint forums<\/strong><\/a> to make decisions and sets out a process to resolve disputes.<\/p>\n Understanding the TCA<\/p>\n The approach taken to the TCA by the UK and the EU is key to understanding Brexit because: \u00a0\u00a0<\/p>\n On UK-EU relations, touring artists and participation in EU programmes<\/p>\n In evidence<\/strong><\/a>, there were calls for wide-ranging changes to UK-EU relations. These included for the UK to rejoin the EU, for the UK to rejoin the EU\u2019s Single Market and customs union, for the restoration of freedom of movement, and increased cooperation in additional areas of defence, justice and crime.<\/p>\n The CCWLSIR Committee reiterated its call for the Welsh Government to produce a dedicated EU strategy setting out its long-term, strategic EU priorities.<\/p>\n On touring artists, the Committee outlined its disappointment that improvements do not feature amongst Welsh Government\u2019s nine review priorities<\/strong><\/a>, nor in the latest UK-EU plans.<\/strong><\/a>. This, it says, compounds its concerns for the sector. Its 2024 Culture shock report<\/strong><\/a> painted a picture of lost opportunities, reduced activity, increased costs and lost income since Brexit.<\/p>\n On EU programmes, the Committee welcomed plans for the UK to rejoin Erasmus+<\/strong><\/a> but asked why rejoining Creative Europe has not been negotiated. Creative Europe is the EU\u2019s \u20ac2.44bn programme<\/strong><\/a> for the cultural and creative sectors. Proposals, announced in July<\/strong><\/a>, would merge this programme with others, with a joint budget of \u20ac8.6bn from 2027.<\/p>\n On trade<\/p>\n On trade, evidence described<\/strong><\/a> increased bureaucracy, costs, time, disruption to supply chains and unintended\/unforeseen consequences. For example, Make UK said<\/strong><\/a> 90% of UK companies still find trading with the EU a challenge under post-Brexit arrangements. Despite this, there was a clear desire and willingness to continue.<\/p>\n The Cabinet Secretary told the committees<\/strong><\/a> that the Welsh economy has been disproportionately impacted by Brexit because it\u2019s more reliant on exporting to the EU compared to the UK as a whole. She pointed to<\/strong><\/a> a drop in trade volumes between 2019-2024 of -31% for Welsh exports to the EU and -20% for EU imports into Wales. In 2024, exports to the EU accounted for 58.1% of Welsh goods exports<\/strong><\/a> compared to 48% of UK goods exports<\/strong><\/a>. \u00a0\u00a0\u00a0<\/p>\n ETRA Committee called on the Welsh Government to publish an assessment of the TCA\u2019s impact on Wales, as it\u2019s done for other post-Brexit trade agreements<\/strong><\/a> with Australia<\/strong><\/a>, New Zealand<\/strong><\/a>, and CPTPP<\/strong><\/a> (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).<\/p>\n It was concerned that the UK Government had not shared its review priorities with the Welsh Government and said it\u2019s \u201cvital\u201d that the devolved governments are fully involved in future negotiations. It also joined LJC Committee in calling for a centralised mechanism to monitor alignment and divergence<\/strong><\/a> to\/from EU rules.<\/p>\n On the environment, emissions and carbon border taxes<\/p>\n CCEI Committee reiterated its view, that Brexit led to an environmental governance gap in Wales<\/strong><\/a>. It said the TCA \u201crepresents a significant shift\u201d because it contains no dedicated chapter on environment and climate cooperation. Instead, the TCA focuses on the environment in the context of trade. Public Health Wales<\/strong><\/a> said it\u2019s important to keep in mind the environmental impacts of trade, like increases in air pollution and Wales\u2019 carbon footprint.<\/p>\n CCEI Committee asked the Welsh Government if this is compatible with its 2024 trade policy paper<\/strong><\/a>, which includes an emphasis on the environment, and asked whether it would support more UK-EU agreements that could help bridge the gap, as was suggested by Logistics UK<\/strong><\/a>.<\/p>\n It said that the Welsh Government hasn\u2019t published enough information on the environment and climate impacts of the UK and EU linking their emissions trading systems (ETS), as is planned<\/strong><\/a>. It says it\u2019s \u201cconcerning\u201d that neither ETS nor carbon border taxes<\/strong><\/a> are Welsh Government priorities.<\/p>\n CCEI Committee supported\u00a0plans for the UK to rejoin<\/strong><\/a> the EU\u2019s single electricity market, which the First Minister says<\/strong><\/a> could reduce energy bills.<\/p>\n On constitutional matters, representation and complexity<\/p>\n Evidence supported<\/strong><\/a> Wales having a greater say in UK-EU decision-making. Academics Dr Claire Royles, Dr Carolyn Rowe, and Dr Rachel Minto called specifically for<\/strong><\/a> the devolved nations\u2019 observer status to be upgraded. Observer status means no speaking or voting rights, even on devolved matters. \u00a0<\/p>\n LJC Committee supported this and also suggested improvements to how the UK\u2019s relationship to the EU is managed domestically. Its asks include a new intergovernmental Memorandum of Understanding on the role of devolved governments in UK-EU relations.<\/p>\n It agreed with CCWLSIR Committee, that Welsh stakeholder involvement since Brexit has reduced and put forward suggestions to help support civil society and representative bodies to have a seat at the table. \u00a0<\/p>\n The Committee also urged the UK and EU to make every effort to avoid compounding the complexity of post-Brexit arrangements and asked the Welsh Government what it\u2019s doing to simplify its own advice and guidance.<\/p>\n Conclusion<\/p>\n All Members will have the opportunity to discuss the committees\u2019 findings and the Welsh Government\u2019s response during the debate on 5 November.<\/p>\n As UK-EU negotiations are underway on their latest plans to deepen cooperation<\/strong><\/a>, the committees\u2019 report pulls together important evidence of Wales\u2019s first four years – not just outside the EU, but on the TCA\u2019s terms.<\/p>\n\n
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