White goods, some cooking products and Christmas trees among items exempted after Dec 31
SOURCE - Daily Telegraph 19/05/20
https://www.telegraph.co.uk/politics/2020/05/19/brexit-boost-government-axe-tariffs-60-per-cent-global-imports/
The Government has said it will eliminate tariffs on 60 per cent of global imports, including white goods and Christmas trees, after the end of the Brexit transition period on Dec 31.
A new UK tariff will replace the EU-wide tariff, which is set for the bloc as a whole, from Jan 1 2021. The announcement is a signal to the EU that the transition period will not be extended, despite trade negotiations being deadlocked and slowed by coronavirus.
Zero tariffs will be introduced on dishwashers, freezers, tampons, paints, screwdrivers, mirrors, scissors and shears, padlocks, some cooking products like yeast and bay leaves and Christmas trees. The EU had tariffs ranging from 2.7 per cent to 8 per cent for such products.
Tariffs are being maintained in the automotive, agricultural and fishing sector to protect domestic industry from foreign competition, as well as on lamb, beef, and poultry and on cars and the vast majority of ceramics. A zero tariff will be introduced on products used in UK production, such as screws and bolts and copper tubes.
If the UK had stayed a member of the EU, it would not pay tariffs on imports from the EU, its major trading partner, but would have to abide by the EU tariff on goods imported from outside the bloc.
EU businesses will continue to benefit from the new zero tariffs but will face increased competition from products elsewhere in the world in the UK market.
The move will not prevent UK exports facing EU tariffs or tariffs elsewhere in the world, but it will mean that tariffs on a wide range of products imported under WTO terms will be removed.
The UK could be trading on WTO terms with the EU if it fails to finalise a trade agreement at the end of the year.
It will also trade on WTO terms with other countries it does not have trade deals or supplementary agreement with.
Failure to agree UK replacements for the EU trade deals, such as with Canada or Japan, could also mean trading on WTO terms.
Liz Truss, the International Trade Secretary, said: “For the first time in 50 years we are able to set our own tariff regime that is tailored to the UK economy.”
Most medical products, such as ventilators, are tariff free in the new system. Products used to fight coronavirus that do carry a tariff will have a temporary zero tariff rate when the new system begins.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “While there has been some positive movement on tariffs for certain non-foods, such as household appliances, without a trade deal with the EU, families across the country are likely to face higher food costs.
"It remains essential that the UK agrees a comprehensive deal that reduces friction – such as checks and delays at the border – and allows tariff-free trade to continue with the EU."
Adam Marshall, the director general of the British Chamber of Commerce, said: "With any tariff changes, there are both winners and losers. Support will be required for the industries, places and people affected by tariff changes at what is already a difficult time."
See Jeff's latest
https://www.youtube.com/watch?v=4P7ty2kiL3Y
SOURCE - Daily Telegraph 19/05/20
https://www.telegraph.co.uk/politics/2020/05/19/brexit-boost-government-axe-tariffs-60-per-cent-global-imports/
The Government has said it will eliminate tariffs on 60 per cent of global imports, including white goods and Christmas trees, after the end of the Brexit transition period on Dec 31.
A new UK tariff will replace the EU-wide tariff, which is set for the bloc as a whole, from Jan 1 2021. The announcement is a signal to the EU that the transition period will not be extended, despite trade negotiations being deadlocked and slowed by coronavirus.
Zero tariffs will be introduced on dishwashers, freezers, tampons, paints, screwdrivers, mirrors, scissors and shears, padlocks, some cooking products like yeast and bay leaves and Christmas trees. The EU had tariffs ranging from 2.7 per cent to 8 per cent for such products.
Tariffs are being maintained in the automotive, agricultural and fishing sector to protect domestic industry from foreign competition, as well as on lamb, beef, and poultry and on cars and the vast majority of ceramics. A zero tariff will be introduced on products used in UK production, such as screws and bolts and copper tubes.
If the UK had stayed a member of the EU, it would not pay tariffs on imports from the EU, its major trading partner, but would have to abide by the EU tariff on goods imported from outside the bloc.
EU businesses will continue to benefit from the new zero tariffs but will face increased competition from products elsewhere in the world in the UK market.
The move will not prevent UK exports facing EU tariffs or tariffs elsewhere in the world, but it will mean that tariffs on a wide range of products imported under WTO terms will be removed.
The UK could be trading on WTO terms with the EU if it fails to finalise a trade agreement at the end of the year.
It will also trade on WTO terms with other countries it does not have trade deals or supplementary agreement with.
Failure to agree UK replacements for the EU trade deals, such as with Canada or Japan, could also mean trading on WTO terms.
Liz Truss, the International Trade Secretary, said: “For the first time in 50 years we are able to set our own tariff regime that is tailored to the UK economy.”
Most medical products, such as ventilators, are tariff free in the new system. Products used to fight coronavirus that do carry a tariff will have a temporary zero tariff rate when the new system begins.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “While there has been some positive movement on tariffs for certain non-foods, such as household appliances, without a trade deal with the EU, families across the country are likely to face higher food costs.
"It remains essential that the UK agrees a comprehensive deal that reduces friction – such as checks and delays at the border – and allows tariff-free trade to continue with the EU."
Adam Marshall, the director general of the British Chamber of Commerce, said: "With any tariff changes, there are both winners and losers. Support will be required for the industries, places and people affected by tariff changes at what is already a difficult time."
See Jeff's latest
https://www.youtube.com/watch?v=4P7ty2kiL3Y
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