The UK government announce its temporary tariff regime for no-deal Brexit, designed to minimise costs to business and consumers while protecting vulnerable industries. The temporary regime would apply for up to 12 months as a full consultation and review on a permanent approach to tariffs is undertaken. Under the regime, 87% of imports to the UK by value would be eligible for tariff free access, up from current 80%. Tariffs would still apply to 13% of imports including some agricultural, dairy, auto and some other products.
Trade Policy Minister George Hollingbery said in the release that
- 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.
- 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.
In addition, in case of no-deal Brexit, a temporary approach will be taken to “avoid new checks and controls on goods at the Northern Ireland land border”. The temporary tariffs will also not apply to goods crossing from Ireland to Northern Ireland.
The tariffs will also apply equally to all other trading partners expect those who were in free trade agreement with the UK. And around 70 developing countries will benefit from preferential access to the UK markets.
