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Montevideo, April 26th 2019 - 02:20 UTC

UK considering massive tariffs cut in the event of a no-deal Brexit

Wednesday, March 6th 2019 - 08:06 UTC
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Many supporters of Brexit argue that tariffs on food and other items should be scrapped in order to lower prices for consumers Many supporters of Brexit argue that tariffs on food and other items should be scrapped in order to lower prices for consumers
Apparently the government intends to publish details of the tariff cuts if lawmakers rejected Prime Minister Theresa May's Brexit deal in a vote due next week Apparently the government intends to publish details of the tariff cuts if lawmakers rejected Prime Minister Theresa May's Brexit deal in a vote due next week

The UK government may cut trade tariffs on between 80% and 90% of goods in the event of a no-deal Brexit, reports say. Some tariffs would be scrapped completely, including those on car parts, and some agricultural produce. However, 10-20% of key products would continue to be protected by the current level of tariffs, including some textiles, cars, beef, lamb and dairy.

The government said it would make an announcement once a decision had been finalized. Tariffs are taxes on imports which protect UK companies from overseas competition.

Many supporters of Brexit argue that tariffs on food and other items should be scrapped in order to lower prices for consumers. But farmers fear that cheap imports and lower standards would destroy many parts of British agriculture. Similar concerns have been expressed in other sectors of the economy, and many business leaders fear the government could be tempted to cut tariffs at their expense.

The plans for widespread cuts in tariffs were first reported by Sky News, which said the government intended to publish details of the tariff cuts if lawmakers rejected Prime Minister Theresa May's Brexit deal in a vote due next week.

The Department for International Trade said that no final decision had been taken on tariffs, but there had been discussion across government about the right level in the even of a no-deal.

“If we leave the European Union without an agreement, our tariffs will need to strike a balance between protecting consumers and businesses from possible price rises and avoiding the exposure of sensitive industries to competition.”

Appearing before the International Trade Select Committee on 6 February, Liam Fox said he was carefully considering all the options for tariffs in the event of no deal.

“Unilateral liberalization [reducing tariffs to zero] is not what I would propose, and I have not heard anyone else in government propose it,” he said.

“Throughout, there needs to be a balance between the impact on consumers and the impact on producers. The government are very clear that they need to give protection where necessary, but without becoming protectionist.”

Categories: Economy, Politics, International.

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