Posted on May 19, 2020
The UK announced on Tuesday its new post-Brexit tariff regime to replace the EU’s external tariff, maintaining a 10% tariff on cars and agricultural products such as lamb, beef, and poultry, whilst cutting levies on tens of billions of dollars of supply chain imports, Reuters reports.
After decades outsourcing its trade policy to the European Union, Britain is embarking on negotiating free trade agreements with countries around the world and aims to have deals in place covering 80% of British trade within three years.
The British government said the new regime, known as UK Global Tariff (UKGT), would be simpler and cheaper than the EU’s Common External Tariff. It will apply to countries with which it has no agreement and will remove 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 UKGT will be set in pounds and is due to come into force on January 1st 2021.
Under the new regime tariffs would be eliminated on a wide range of products: 60% of trade will come into the UK tariff free on WTO terms or through existing preferential access, the government said.
Image: P&O ferries
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