Britain sets out new independent trade tariff regime

https://uk.reuters.com/article/uk-br...-idUKKBN22V0LL

Britain sets out new independent trade tariff regime

Tariffs removed from tens of billions of pounds worth of imported goods

https://www.thewalpole.co.uk/wp-cont...mpiretrade.jpg

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Originally Posted by Reuters

LONDON (Reuters) - The United Kingdom announced a new post-Brexit tariff regime on Tuesday to give it leverage in trade talks, maintaining the European Union’s 10% duty on cars but cutting levies on tens of billions of dollars of supply chain imports.

The new tariff regime, which would come into effect from January 2021, aims to simplify what some UK officials call an overly complex EU system and help Britain negotiate trade deals with the United States, the Brussels-based bloc and others.

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 would 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.

It will maintain tariffs on imported products competing with UK industries such as agriculture, automotive, ceramics and fishing, and remove levies on 30 billion pounds ($37 billion) worth of imports entering UK supply chains.

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HM Gov has unveiled the UK’s new Global Tariff Regime.

All ‘nuisance tariffs’ (under 2%) will be abolished.

Over 13,000 tariff variations on products like biscuits and pizzas will be abolished by scrapping the EU’s Meursing Table.

Plus much more.

See:https://t.co/1a1cR0ERSU

— Bruges Group 🇬🇧 (@BrugesGroup) May 19, 2020

For the first time in almost 50 years the UK will have its own tariff regime. #ukglobaltariff👇 https://t.co/K6mF92d3XI

— Liz Truss (@trussliz) May 19, 2020

New UK global tariff

🌏Scraps unnecessary tariff variations
🌎Rounds tariffs down to standardised %s
🌍Ditches EU’s anti-business Meursing table & its 13,000 tariff variations
🌏Gets rid of /all/ “nuisance tariffs” (those below 2%)
🌍Ensures 60% of trade comes in tariff free https://t.co/0nB0toTfKU

— Tom Harwood (@tomhfh) May 19, 2020

Great news. We're now setting our own trade policy because we now can, being outside of the Single Market + Customs Union in 7 months time. I remember being told all of this wasn't possible even though 150+ other countries do it?

There's still further scope for tariffs to fall even further with individual countries when FTAs are signed and come into force.

Thoughts?

why would a country want a fta when we arent even charging import tax on thousands of items

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Originally Posted by dbgtz

why would a country want a fta when we arent even charging import tax on thousands of items

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Erm that's the primary purpose of FTAs - to remove trade barriers.

but the barrier of tax is removed so why would anyone sign up to a fta

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Originally Posted by dbgtz

but the barrier of tax is removed so why would anyone sign up to a fta

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For the thousands of other products that aren't sanitary towels or yeast.

such as what and to who? the reality is all this does is weaken what you have to offer

btw have you actually looked at what tariffs have been removed or are you just repeating a tweet youve read

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Originally Posted by dbgtz

such as what and to who?

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I don't know, take your pick. Lamb from New Zealand?

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Originally Posted by dbgtz

the reality is all this does is weaken what you have to offer

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How can you conclude that? It's the exact opposite. Countries with less tariffs are more attractive to do FTAs with as the scope of the FTA is deeper, that is why India for example is difficult (although becoming less so in recent years) to do comprehensive FTAs with as it is highly protectionist in many areas.

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Originally Posted by dbgtz

btw have you actually looked at what tariffs have been removed or are you just repeating a tweet youve read

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Tweet. I don't read tariff schedules and I doubt you do either.