The government has announced that the UK’s new MFN tariff regime, the UK Global Tariff (UKGT) will replace the EU’s Common External Tariff on 1 January 2021 at the end of the transition period.
The new tariff will support the economy by making it cheaper and easier for businesses to import goods from overseas. It is aimed at removing the red tape and other unnecessary barriers to trade, reduce cost pressures and increase choice of consumer and back UK industries to compete on the global stage.
The Government is maintaining tariffs on a number of products backing UK industries such as agriculture, automotive and fishing. This will help to support businesses in every region and nation of the UK to thrive.
They are backing UK industries by:
- Maintaining tariffs on agricultural products such as lamb, beef, and poultry.
- Maintaining a 10% tariff on cars.
- Maintaining tariffs for the vast majority of ceramic products.
- Removing tariffs on £30 billion worth of imports entering UK supply chains. 0% tariffs on products used in UK production, including copper alloy tubes (down from 5.2%) and screws and bolts (down from 3.7%).
International Trade Secretary Liz Truss said: “For the first time in 50 years we are able to set our own tariff regime that is tailored to the UK economy.”
“Our new Global Tariff will benefit UK consumers and households by cutting red tape and reducing the cost of thousands of everyday products.”
British Chambers of Commerce Director General, Adam Marshall, said: “The publication of the UK Global Tariff provides welcome clarity for businesses as they prepare for life outside of the EU.
“While the new tariff regime will provide the government with some leverage in future trade talks, it also demonstrates the importance of reaching a UK-EU agreement to avoid substantial increases in costs for businesses on both sides of the Channel.
For further information on the new UKGT please visit here.