1Introduction
1.Scotland has a proud history as a trading nation with its exports worth around a third of Scotland’s GDP.1 This performance is underpinned by Scotland’s reputation for quality epitomised by globally renowned brands such as Scotch whisky and Scottish salmon. Through the UK’s membership of the EU, the trade policy Scottish businesses currently operate under is set at EU level, with the European Commission responsible for negotiating trade agreements with other countries for all member states. This will change as the UK leaves the European Union, with the UK Government having stated that it will “seek opportunities to pursue an ever more ambitious global trade agenda, to maximise our trade opportunities globally and across all countries”2 with the agreement of free trade agreements being “one important way” to “strengthen [the UK’s] trade and investment relationships with partners across the world”.3
Devolution settlement
2.Under the devolution settlement, international trade is reserved to the UK Government. The Scottish Government has no formal role in trade policy but is responsible for implementing international obligations which relate to devolved matters and for economic development, which includes promoting Scottish exports. The UK Government and the devolved administrations have agreed a Memorandum of Understanding which commits the two Governments to close cooperation on trade policy and trade promotion.4
Our inquiry
3.We launched this inquiry to identify Scotland’s priorities for future trade policy post-Brexit; examine what role the devolved administrations should have in setting UK trade policy, and to look at how the two Governments work together to promote Scottish exports. We received 28 pieces of written evidence and held seven evidence sessions where we heard from academics, trade associations, business representatives, campaign groups, think tanks and UK and Scottish Governments Ministers. We also met with industry and sector groups, civil servants, MEPs and the Canadian Ambassador to the EU during a visit to Brussels and held a roundtable with farmers & landowners at the Royal Highlands Show in Edinburgh. We are grateful to everyone who contributed to our inquiry.
1 Scottish Parliament Information Centre, Scotland’s exports 2016, 2018
2 UK Government, Trade White Paper: our future UK trade policy, October 2017, section 1,1
3 UK Government, Trade White Paper: our future UK trade policy, October 2017, section 3.3
Published: 10 March 2019