Published 21:32 IST, May 19th 2020
UK announces new post-Brexit global tariff regime aimed to simplify 'complex EU system'
The United Kingdom has recently announced plans for a new post-Brexit tariff regime. which is reportedly simpler than the EU tariff system.
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The United Kingdom has recently announced plans for a new post-Brexit tariff regime. According to reports, the announcement was made on May 19 and the new tariff regime is aimed at replacing the European Union’s external tariff. The new tariff regime will maintain a 10% tariff on cars but simultaneously will cut levies on tens of billions of dollars of supply chain imports.
UK Global tariff, 'simpler' that the EU system
According to reports, after Brexit, Britain finally has control over its own trade policy after years of having outsourced it to the European Union. Britain’s new tariff regime seeks to establish free trade agreements with countries around the world and aims to cover 80% of British trade by the year 2022.
As per reports, Britain’s new tariff regime will be a departure from what has been frequently seen as a very complex EU system. While Britain is currently in negotiations with the United States and the Brussel based European Union, if Britain fails to reach an agreement with the EU by the end of 2020 then the price of certain items like, food, cars and some chemical inputs that are imported into Britain would rise sharply.
According to reports, UK’s International Trade Secretary Liz Truss has claimed that Britain’s new tariff system, called UK Global Tariff, will greatly benefit the UK consumers and households. According to Tuss the UK Global Tariff will be simpler than the previous EU system and also reduce the cost of thousands of everyday products.
Today we are announcing the new UK Global Tariff that will come into force on 1 January 2021. It will mean:
— Liz Truss (@trussliz) May 19, 2020
✅ Lower costs for consumers
✅ Cutting red tape and complexity for business
✅ Tariff regime suited to 🇬🇧 economy👇https://t.co/FBQ9LHdxUA
According to the government, the tariffs that were previously placed on products will be eliminated on a wide range of products. The government statement also added that it would maintain tariffs on agriculture, automotive and fishing products since they are competitive industries.
(Image Credit: ANI)
21:32 IST, May 19th 2020