The UK Goverment has today published its guidelines for temporary import tariffs in the case of no-deal Brexit. According to the Cabinet, the goverment wants to protect vulnerable industries like agriculture in this kind of situation. On the other hand, the goverment reminds that 87 % of total imports by value would be tariff free.
This would mean that for example vehicle import from the EU would get 13 % tariffs in the case of no-deal Brexit. This would not apply for the car parts supply from the EU.
According to the Goverment press release tariffs would apply to 13% of goods imported into the UK. This includes:
- A mixture of tariffs and quotas on beef, lamb, pork, poultry and some dairy to support farmers and producers who have historically been protected through high EU tariffs.
- Retaining a number of tariffs on finished vehicles in order to support the automotive sector and in light of broader challenging market conditions’. However, car makers relying on EU supply chains would not face additional tariffs on car parts imported from the EU to prevent disruption to supply chains.
- In addition, there are a number of sectors where tariffs help provide support for UK producers against unfair global trading practices, such as dumping and state subsidies. Tariffs would be retained for these products, including certain ceramics, fertiliser and fuel.
- To meet our long-standing commitment to reduce poverty through trade, the government currently offers preferential access to the UK market for developing countries. To ensure that access for developing countries is maintained, we would retain tariffs on a set of goods, including bananas, raw cane sugar, and certain kinds of fish.
-Our priority is securing a deal with the European Union 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, said Trade Policy Minister George Hollingberg in the release.