Brexit: Oil industry undermined' by no-deal tariff plan, says Welsh minister

Eluned Morgan says the tariff plan would harm Wales's economy

Oil refineries would be "massively undermined" by plans not to introduce new tariff rates if there is a no-deal Brexit, a Welsh minister has said.

UK ministers have said they will not tax 88% of imports if the UK leaves the EU without agreeing a departure deal.

Welsh minister Eluned Morgan said she was "hugely disappointed" and oil refining provides 14% of Welsh exports.

Last month, the Welsh secretary said Valero's Pembrokeshire oil refinery was safe and would not close under no deal.

Alun Cairns had been pressed on the warning, in the original version of UK ministers' no-deal Brexit assessment, that major oil refineries could be forced to close under the new trade terms planned.

More than 500 people are employed at Valero in Pembrokeshire refinery, plus hundreds of contractors.

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Ms Morgan, the Welsh Government's Minister for International Relations, tweeted on Tuesday: "I am hugely disappointed @GOVUK has failed to introduce new tariff rates to protect our oil refining sector, which is responsible for 14% of Welsh exports."

The UK government had "massively undermined the competitive position of the sector by sticking to zero tariffs in the event of a no deal", she said,

Earlier this year, the UK government said it would introduce tariffs on some meat and dairy products shipped into the UK following a no-deal Brexit.

However, its latest plans indicate 88% of UK imports will be tariff-free if the country leaves the EU without a deal, up from 87% announced in March.

UK Trade Policy Minister Conor Burns, has said: "Our temporary tariff regime will support the UK economy as a whole, helping British businesses to trade and opening up opportunities for business to import the best goods from around the world at the best prices for British consumers."

Stephen Crabb, Conservative Preseli Pembrokeshire MP, told BBC Wales in September that Valero had been "very clear" with him that it was "in Pembrokeshire for the long-term" but "they've also been very clear with me and to government directly about the negative implications of a no-deal Brexit."