Left Menu
Development News Edition

UK announces new post-Brexit global tariff regime

Reuters | London | Updated: 19-05-2020 17:15 IST | Created: 19-05-2020 16:15 IST
UK announces new post-Brexit global tariff regime
Representative Image Image Credit: ANI

The United Kingdom announced a new post-Brexit tariff regime on Tuesday to replace the European Union's external tariff, maintaining a 10% tariff on cars but cutting levies on tens of billions of dollars of supply chain imports.

After decades of outsourcing its trade policy to the EU, Britain is seeking free trade agreements with countries around the world and aims to have deals in place covering 80% of British trade by 2022. The new tariff regime, in place from January 2021, marks a departure from what some UK officials call an overly complex EU system, setting out Britain's stall as it negotiates trade deals with both the United States and the Brussels-based bloc.

But it will mean that if Britain and the EU fail to reach a free trade deal by the end of the year, the price of some food, cars, and some chemical inputs imported from the bloc would rise sharply. Britain said the regime, known as UK Global Tariff, would be simpler and cheaper than the EU's Common External Tariff. It will apply to countries with which it has no agreement and removes all tariffs below 2%.

"Our new Global Tariff will benefit UK consumers and households by cutting red tape and reducing the cost of thousands of everyday products," International Trade Secretary Liz Truss said. The government said tariffs would be eliminated on a wide range of products, with 60% of trade coming into the UK tariff-free on WTO terms or through existing preferential access.

The UK will maintain tariffs on products competing with industries such as agriculture, automotive and fishing, and remove levies on 30 billion pounds ($37 billion) worth of imports entering UK supply chains. "Keeping agricultural protection makes sense as a bargaining chip for EU & US trade negotiations. But means big cost increases for agriculture imports if no UK-EU FTA," said Thomas Sampson, Associate Professor at the London School of Economics.

The UK will also remove tariffs on products that support energy efficiency and will introduce a temporary zero tariff on goods being used to fight COVID-19 such as personal protective equipment. The new regime did not meet all expectations.

A representative from one chemical company who declined to be identified said the firm had been promised elimination of tariffs on inputs for the sector. "It's disappointing across the board," the representative said. ($1 = 0.8183 pounds)



Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...


Latest News

Woman wanted in gold smuggling case booked under UAPA: NIA to Kerala HC

A former woman employee of the UAE consulate, key suspect in the gold smuggling bid through diplomatic baggage, has been booked under the Unlawful Activities Prevention Act, the NIA informed the Kerala High Court. Making the submission whi...

Cong demands judicial probe by sitting SC judge into entire episode involving gangster Dubey

The Congress on Friday demanded a judicial probe by a sitting Supreme Court judge into the entire episode involving gangster Vikas Dubey to bring out the truth about those who had granted protection to him and the alleged political-criminal...

Justice only thing killed in UP CM's 'encounter raj': TMC

Senior TMC leader and MP Mahua Moitra came down heavily on the Uttar Pradesh government on Friday over the killing of gangster Vikas Dubey, asserting that justice is the only thing killed in Chief Minister Yogi Adityanaths encounter raj. Du...

COVID-19: Bar Council of Delhi seeks Rs 500 cr from Centre to aid advocates in Delhi, NCR

The Bar Council of Delhi BCD on Friday wrote to Prime Minister Narendra Modi seeking financial assistance under the contingency fund and PM Cares Fund to mitigate the hardship of the advocates in Delhi and NCR. BCD chairman advocate KC Mitt...

Give Feedback