United Kingdom modified tariff regime

The Government of the United Kingdom modified on Tuesday the temporary regime of tariffs that would be applied in the country in the case of an exit without agreement of the European Union on October 31 and that would imply that 88% of the British imports would be free of the payment of entrance fees, after reviewing the rates foreseen for truck and bioethanol purchases, as well as an adjustment in those applied to textile imports.

Thus, the new temporary regime that would be applied in the case of a Brexit without agreement provides for a 10% tax on imports of heavy trucks, compared to the previous 22%, as well as an adjustment of tariffs on Bioethanol imports to maintain the support of British producers and the application of tariffs on more textile products, in order to ensure that emerging countries maintain their preferential access to the British market.

These three specific amendments to the tariff rates published in March will allow UK supply chains to continue to run smoothly and keep prices low for consumers, said the Government, which estimates that 88% of the total value of imports to the United Kingdom would be eligible for duty-free access.

“The United Kingdom is a free market nation and British commerce is in a strong position to compete in an open context and free trade,” said the Secretary of State for Trade Policy, Conor Burns.

The UK Department of International Trade said that the new temporary tariff regime provides a balanced approach to tariffs for both consumers and producers, stressing that, in the case of withdrawal without EU agreement, British companies should not have to assume the impact derived from the cost of import tariffs for most goods.

For instance, New Zealand honey will see its tariff fall from 17% to zero, Brazil’s grapes will be reduced from around 15% to zero and other products, such as tennis rackets and wines, will no longer have a tariff, was pointed out.

This regime would be applied for a period of 12 months, while a consultation with companies and consumers on the permanent approach to UK tariffs in the framework of the development of an independent trade policy is expected from next January.

K. Tovar

Source: dpa