Tariffs to be slashed on many imports from outside the EU in no-deal Brexit
Britain will slash tariffs on a range of imports from outside the European Union if MPs vote on Wednesday to leave without a deal.
But some products coming from the remaining 27 EU member states which are currently imported free of tariffs will now face levies for the first time. Ministers said that, overall, the changes would represent a “modest liberalisation” of the UK’s tariff regime.
Under a unilateral temporary scheme announced by the Government, 87% of all imports to the UK by value would be eligible for zero-tariff access – up from 80% at present – while many other goods will be subject to a lower rate than currently applied under EU rules.
In special arrangements for Northern Ireland, the UK’s temporary import tariffs will not apply to EU goods crossing the border from the Republic.
Among the 13% of imports by value which will be subject to tariffs will be:
– Beef, lamb, pork and poultry and some dairy products, in order to protect UK farmers and producers from cheap imports;
– A number of tariffs on finished vehicles to support the automotive sector, which will not apply to car parts imported from the EU to prevent disruption to supply chains;
– Products including certain ceramics, fertiliser and fuel, where tariffs protect UK producers against unfair practices like dumping and state subsidies;
– Goods including bananas, raw cane sugar and certain kinds of fish, where tariffs are used to permit preferential access to the UK market for developing countries.
If the UK leaves the EU without a deal on 29 March, the temporary schedules will apply for up to 12 months while a full consultation and review of a permanent approach is undertaken.
Proposed tariff rates on a range of food products were announced as a proportion of the so-called “most favoured nation” (MFN) currently imposed by the EU on imports from countries which do not have a free trade agreement.
Rates include beef (53% of MFN), poultry meat (60%), sheep meat (100%), pig meat (13%), butter (32%), Cheddar-like cheese (13%), protected fish and seafood products (100%) and milled and semi-milled products (83%).
Tariffs on finished cars and trucks will be set at 10.6%, down from the EU MFN rate of 11.3%, while for finished buses the rate will remain unchanged at 12.6%.
Other rates include 0.2% on mineral products, 0.1% on chemical products, 2.1 on fertilisers, 0.1% on plastics and rubber, 0.2% on leather and hides, 0.9% on textiles and textile products, 0.3% on stone and cement, 1.2% on ceramics, 0.2% on glass and 2.9% on transport equipment.
Trade Policy Minister George Hollingbery said: “Our priority is securing a deal with the EU as this will avoid disruption to our global trading relationships. However we must prepare for all eventualities.
“If we leave without a deal, we will set the majority of our import tariffs to zero, whilst maintaining tariffs for the most sensitive industries.
“This balanced approach will help to support British jobs and avoid potential price spikes that would hit the poorest households the hardest.
“It represents a modest liberalisation of tariffs and we will be monitoring the economy closely as well as consulting with businesses to decide what our tariffs should be after this transitional period.”
Last night British Retail Consortium CEO Helen Dickinson said British retailers were "exasperated" at the lack of progress on Brexit following the Prime Minister's second defeat in the House of Commons as she attempted to gain approval for her withdrawal agreement.
"Hundreds of ships are currently sailing towards Britain without a clear understanding of the tariffs, checks or documentation requirements they will face when they arrive. Politicians must swallow their pride and find an agreement that can command the support of the House," Dickinson said.
Dickinson has urged the Government to take a no deal Brexit off the table as has luxury industry body Walpole, which says a no deal Brexit could cost the luxury industry £6.8m in lost income.
MPs are due to vote today on taking no deal off the table for the UK's proposed withdrawal date of 29 March. Reports suggest the the Prime Minister herself will vote against no deal.
Image and additional reporting: The Press Association