The value of Welsh exports and imports to and from other nations of the UK have been revealed.
According to the Office for the Internal Market (OIM) - which is part of the Competitions and Markets Authority - Wales annually exports £26bn to the rest of the UK (England, Scotland and Northern Ireland), and imports £27bn.
All four UK nations are heavily reliant on services, which make up at least 70% of their economies. However, there are some differences between nations. For example, manufacturing contributes relatively more to the economies of Wales and Northern Ireland while professional and technical activities and financial services contribute relatively more to the economies of England and Scotland.
Intra-UK exports are worth at least £190bn per year, representing over a quarter of all UK exports.
Scotland, Wales and Northern Ireland, in contrast to England, trade more with the rest of the UK than with the EU or the rest of the world. They are also net importers within the UK, purchasing more from other UK nations than they sell to them. In contrast, England is a net exporter to the other UK nations.
Of the devolved nations, Scotland has the greatest amount of trade with the rest of the UK with £66bn of imports and £52bn of exports. Figures for Northern Ireland shows £13bn of imports and £11bn of exports.
In relative terms, Scotland, Wales and Northern Ireland, have broadly similar trade patterns with the rest of the UK. 66% of Scotland’s imports and 60% of exports are from and to other UK nations.
For Northern Ireland and Wales, imports from the rest of the UK are 63% and 58% of total imports, respectively, with sales to the rest of the UK accounting for around half of their exports.
Almost 40% of Northern Ireland’s and Wales’s sales to the rest of the UK were in manufactured goods, reflecting the importance of manufacturing to these economies
A fifth (20%) of Scotland’s and 15% of Wales’s sales to the rest of the UK were in primary sector goods and utilities, reflecting the importance of Scotland’s oil and gas industry and Wales’s agricultural sector
Andrea Coscelli, chief executive of the CMA, said:“This first-of-a-kind report on the flow and regulation of trade between the nations of the UK illustrates not only the vast scale of the internal market, but also the significance of the work the OIM has been tasked with doing.
“With billions of pounds worth of trade flowing between the four nations every year, it’s important that the internal market operates in the interests of people across the UK. While the OIM has found little substantial regulatory difference emerging between the nations so far, this is unsurprising given how little time has passed since the implementation of Brexit.
“By deepening our understanding of cross-border trade, the work of the OIM will help make buying and selling across the UK as easy as possible, wherever you’re based.”
The OIM said it has found no evidence of substantial new regulatory differences emerging between the four administrations since the UK left the EU. However, it said this is not unexpected at this stage and differences might appear over time as governments develop and implement their programmes.
The OIM has identified some sectors where some regulatory differences may be more likely including: the environment, energy use, agriculture, animal welfare, food, drink and health, and some safety-related matters.
The Welsh Government has taken legal action against the post EU internal market regime for the UK, which is argues is an assault of devolution.
However, last month the Court of Appeal dismissed case its case challenging the UK Internal Market Act.
The Court of Appeal upheld the earlier decision of the High Court that the case was brought prematurely. It effectively said that only when there is a specific Senedd legislation whose potential effect is said to be diminished by the Act that it can make a decision.
The Welsh Government is seeking permission for an appeal to the Supreme Court.
