Single MarketThe lifeline to Wales' economy
WHAT IS THE SINGLE MARKET?
The Single Market is an area in which people, capital, goods and services can move freely and easily, allowing Welsh people to live and work in over 30 other European countries, and allows Welsh businesses to flourish by being able to trade just as easily with businesses in England as it is with businesses in Italy.
WHERE DOES WALES FIT IN?
Outside the Single Market, tariffs and non-tariff barriers would be imposed (e.g. less inward investment). Wales also indirectly trades within this Single Market through the rest of the UK, where Welsh goods form component parts that go on to be exported from England, Scotland or Northern Ireland. Therefore, it is not just vital for Wales to maintain its current economic links within the Single Market, but the rest of the UK also.
Wales is arguably more vulnerable to economic shocks than the rest of the UK due to a lower average household income and a much higher reliance on the manufacturing sector. Any worsening economic conditions on the UK as a result of leaving the Single Market would have a disproportionately negative impact on Wales.
WHAT ABOUT THE BREXIT DIVIDEND?
Contrary to the reckless promise (lie) of £350 million per week being available for the NHS, there will be in fact, less money for our public services.
Leaving the Single Market must mean barriers and obstacles of some shape and size being set up (a free trade agreement which exactly replicated the benefits of Single Market membership is never going to happen).
It is reasonable then, to assume that this worse arrangement between the UK and the EU inevitably means lower levels of economic output (weak economic growth or recession). This would translate into lower tax revenue, which then leads to less money for vital public services like the NHS.
There is no brexit dividend, there is however, a brexit bill. A bill that you will have to pay.
THE SINGLE MARKET & TRANSPORT?
Membership of the European Union has meant, over the past decades, significant investment in Wales’ transport infrastructure. Whether this be through new roads, common standards for vehicles across the continent, or stronger passenger rights.
Inside the Single Market, people and goods can pass through with ease, but if we leave, as is the plan by the UK Government, checks at the borders would become onerous and resource intensive. As well as causing problems to passengers, this will have a negative commenrcial effect on ports, airports and businesses.
If the UK Government’s strategy doesn’t affect the land border between Northern Ireland and the Republic of Ireland (as they keep claiming), then this will become a much more attractive route between the UK and the EU. Wales would lose out as our ports will lose custom to Northern Ireland.
Over the last 3 years
- 227 instances of investment from abroad
- from a total of 34 countries
- Safeguarding 27,000 Welsh jobs
Being members of the Single Market is what has convinced investors to invest in Wales. As a result of brexit uncertainty, potential inward investment projects have been cancelled or postponed.
Is Brexit, worth it?
No, it isn’t.