UK announces new post-Brexit global tariff regime

[snoop1130]

UK announces new post-Brexit global tariff regime

By Kylie MacLellan and Elizabeth Piper

 

An hybrid flag depicting the EU and the British flags is seen during a debate on the last EU summit and Brexit at the European Parliament in Strasbourg, France, October 22, 2019. REUTERS/Vincent Kessler/Files

 

LONDON (Reuters) - 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 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 which 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 an elimination of tariffs on inputs for the sector. "It's disappointing across the board," the representative said.

 

-- © Copyright Reuters 2020-05-19

 

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[RichardColeman]

Excellent , 500% import tax on Chinese goods please, to be paid by the exporter in China prior to shipping

[JonnyF]

18 hours ago, snoop1130 said:

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.

Good. Then the British will either buy locally or if not available locally, buy from non EU countries who are prepared to sign a fair, mutually beneficial trade deal. The EU aren't the only ones producing cars, food, wine etc.

 

Let's see how that works out for them, having one of their biggest customers going elsewhere as they deal with the fallout from COVID-19, a highly likely Italexit, most of their member states in recession, internal squabbling over bailout cash etc.

 

Barnier would do well to swallow his pride and recognize that we are a sovereign state again. If he wants us to follows EU rules and regulations he can do one.

 

Seems like reality is finally starting to dawn on him though. The days of Theresa May are long gone. 

 

 

 

 

[RuamRudy]

2 hours ago, robertson468 said:

You have clearly been cacooned during the Virus issue and not had any news delivered to you.  The EU is forecast to experience a catastrophic failure, not only because of the discontent of the South European Countries with their Northern "Partners", but even Germany is squabbling about the European Union recommended bailout.  Suggest that you might like to get out and about a bit more and read the various news items about Brexit?

Try raising your eyes above your hatred for the EU - it's not just the EU but the whole world is expecting a recession unlike any seen in our lifetimes. Is this really the time to be leaving the world's most successful trading partnership on the back of a bucketful of lies and a few ethereal slogans that nobody can tangibly define?

[Rookiescot]

1 hour ago, RichardColeman said:

Excellent , 500% import tax on Chinese goods please, to be paid by the exporter in China prior to shipping

Thats not how tariffs work. Ultimately it will be UK consumers who have to pay. 

[theoldgit]

Troll post removed, along with a number of responses.

[RuamRudy]

3 minutes ago, car720 said:

22 minutes ago, RuamRudy said:

Try raising your eyes above your hatred for the EU - it's not just the EU but the whole world is expecting a recession unlike any seen in our lifetimes. Is this really the time to be leaving the world's most successful trading partnership on the back of a bucketful of lies and a few ethereal slogans that nobody can tangibly define?

Yes.

Well go on then, help us understand the tangible benefits. How will our lives improve as a result of brexit, and why, on the cusp of a crisis, is it wise to strike out alone?

[transam]

Just now, RuamRudy said:

Well go on then, help us understand the tangible benefits. How will our lives improve as a result of brexit, and why, on the cusp of a crisis, is it wise to strike out alone?

Apron strings.....?   ????

[JonnyF]

26 minutes ago, RuamRudy said:

Try raising your eyes above your hatred for the EU - it's not just the EU but the whole world is expecting a recession unlike any seen in our lifetimes. Is this really the time to be leaving the world's most successful trading partnership on the back of a bucketful of lies and a few ethereal slogans that nobody can tangibly define?

It's never a bad time to leave a corrupt, failing, protectionist racket.

 

I suppose you'd rather extend the transition period indefinitely and end up a vassal state, subsidizing the massive bailouts of other member states hit by COVID19.

[CharlieH]

Reported Troll comment removed.

[RuamRudy]

2 minutes ago, transam said:

3 minutes ago, RuamRudy said:

Well go on then, help us understand the tangible benefits. How will our lives improve as a result of brexit, and why, on the cusp of a crisis, is it wise to strike out alone?

Apron strings.....?   ????

Dear lord, I appreciate that some people struggle to understand the basics, and that jingoism and flag waving are sufficiently appealing to allow themselves to be seduced by the snake oil salesmen, but the rest of us are genuinely concerned.

You cannot feed your family on ignorance and hubris. 

[norfolkandchance]

I expect that old chestnut. Scottish Independence will be mentioned before long.

[JonnyF]

8 minutes ago, RuamRudy said:

Well go on then, help us understand the tangible benefits. How will our lives improve as a result of brexit, and why, on the cusp of a crisis, is it wise to strike out alone?

1. We can strike independent trade deals with countries all around the world on terms that benefit the UK.

2. We can control our own borders.

3. We no longer have to subsidize failing European economies.

 

There's 3 off the top of my head,

[RuamRudy]

2 minutes ago, JonnyF said:

It's never a bad time to leave a corrupt, failing, protectionist racket.

 

I suppose you'd rather extend the transition period indefinitely and end up a vassal state, subsidizing the massive bailouts of other member states hit by COVID19.

Or you could help explain what exactly is a vassal state. How has it manifested itself to date, how have my liberties been curtailed by it, and what will we see differently when we are no longer one?

 

As the UK appears to be the EU country worst affected by COVID, is it not possible that help would flow the other way?

[JonnyF]

2 minutes ago, norfolkandchance said:

I expect that old chestnut. Scottish Independence will be mentioned before long.

Nothing says Independence like being a minnow in a pool of 28 ????.

[RuamRudy]

3 minutes ago, norfolkandchance said:

I expect that old chestnut. Scottish Independence will be mentioned before long.

You just did it. Well done.

[TopDeadSenter]

2 minutes ago, RuamRudy said:

Dear lord, I appreciate that some people struggle to understand the basics, and that jingoism and flag waving are sufficiently appealing to allow themselves to be seduced by the snake oil salesmen, but the rest of us are genuinely concerned.

You cannot feed your family on ignorance and hubris. 

This endless negativity is totally unnecessary. We had a vote, Brexit won. Now it is time to stand up for your country, win better trade deals, move forward. Try to make our farmers, fishermen, our manufacturers have a fairer shot of things. Not just snipe and moan and groan. If the EU economies and citizens happiness goes through the stratosphere post Brexit and Britain becomes a 3rd world cesspit, well you can then say "I told you so". But let's try our best to make it a success first, OK?

[RuamRudy]

4 minutes ago, JonnyF said:

1. We can strike independent trade deals with countries all around the world on terms that benefit the UK.

2. We can control our own borders.

3. We no longer have to subsidize failing European economies.

 

There's 3 off the top of my head,

1) Why would we want to? We already have very good trading deals, and so far we have spectacularly failed to show even a glimmer of hope in replacing those with anything at all, let alone anything better.

2) We always had control - except our government, even now, is not taking control. 

3) Yin and yang - the upside from access to the largest internal market in the world outweighs the cost of doing business there.

[norfolkandchance]

4 minutes ago, RuamRudy said:

You just did it. Well done.

Got it in before you did..

[transam]

5 minutes ago, RuamRudy said:

Or you could help explain what exactly is a vassal state. How has it manifested itself to date, how have my liberties been curtailed by it, and what will we see differently when we are no longer one?

 

As the UK appears to be the EU country worst affected by COVID, is it not possible that help would flow the other way?

More expected diatribe.....????.............Why not mention Trump as well....????

[RuamRudy]

2 minutes ago, TopDeadSenter said:

This endless negativity is totally unnecessary. We had a vote, Brexit won. Now it is time to stand up for your country, win better trade deals, move forward. Try to make our farmers, fishermen, our manufacturers have a fairer shot of things. Not just snipe and moan and groan. If the EU economies and citizens happiness goes through the stratosphere post Brexit and Britain becomes a 3rd world cesspit, well you can then say "I told you so". But let's try our best to make it a success first, OK?

No, not OK in the slightest. Brexit is a disaster that has already cost us dearly and I fully reserve the right to point that out repeatedly. As the toll mount up, I will still be there with my finger pointing at the culprits. At no time will I stand for Brexit Britain, I am afraid. When there is nothing positive to say, all I can offer is negativity.

[RuamRudy]

Just now, transam said:

More expected diatribe.....????.............Why not mention Trump as well....????

Either you never read my post properly or you don't know what diatribe means. 

[Rookiescot]

31 minutes ago, JonnyF said:

It's never a bad time to leave a corrupt, failing, protectionist racket.

 

I suppose you'd rather extend the transition period indefinitely and end up a vassal state, subsidizing the massive bailouts of other member states hit by COVID19.

The UK has the highest death toll in the EU due to corona.

 

 

[evadgib]

28 minutes ago, RuamRudy said:

No, not OK in the slightest. Brexit is a disaster that has already cost us dearly and I fully reserve the right to point that out repeatedly. As the toll mount up, I will still be there with my finger pointing at the culprits. At no time will I stand for Brexit Britain, I am afraid. When there is nothing positive to say, all I can offer is negativity.

And we likewise reserve the right to declare that ???????? - ???????????????????????????? + ???????? = ⛔ ! 

Edited May 20, 2020 by evadgib

[Rookiescot]

4 minutes ago, evadgib said:

And we likewise reserve the right to declare that ???????? - ???????????????????????????? + ???????? = ⛔ ! 

Not up to you though is it?

[baansgr]

55 minutes ago, RuamRudy said:

Well go on then, help us understand the tangible benefits. How will our lives improve as a result of brexit, and why, on the cusp of a crisis, is it wise to strike out alone?

Because it's what people want and voted for..plus the upshot of trading easily with the rest of the world rather than a few countries in the EU....apart from France, Ireland, Germany and Poland....the other 23 countries buy naff all from the uk

[baansgr]

12 minutes ago, Rookiescot said:

Not up to you though is it?

This is the point....can't the English have a referendum...we could vote on if we won't shot of Scotland...fair is fair...you already had your vote give the English the same

[Rookiescot]

3 hours ago, baansgr said:

This is the point....can't the English have a referendum...we could vote on if we won't shot of Scotland...fair is fair...you already had your vote give the English the same

Absolutely agree.

[Scott Tracy]

Tarrifs, what are they for but to protect industries that cannot compete in the global market.

 

Sometimes this is not of their making, labour costs etc.

[bannork]

3 hours ago, baansgr said:

Because it's what people want and voted for..plus the upshot of trading easily with the rest of the world rather than a few countries in the EU....apart from France, Ireland, Germany and Poland....the other 23 countries buy naff all from the uk

It's not what the people want. Only 37% of the voting electorate voted for Brexit.