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As we recover from the unprecedented economic challenges posed by coronavirus, the UK will champion free trade, fight protectionism and remove trade barriers.
The Government has this morning (19 May) announced its new tariff regime - the UK Global Tariff (UKGT). This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the transition period.
Our new tariff is tailored to the needs of the UK economy. It will support the country, by making it easier and cheaper for businesses to import goods from overseas.
It is a simpler, easier to use and lower tariff regime than the EU’s Common External Tariff (EU’s CET) and will be in pounds, not euros. It will scrap red tape and other unnecessary barriers to trade, reduce cost pressures and increase choice for consumers. It will also back UK industries to compete on the global stage.
The UKGT almost doubles the number of products that are tariff free relative to what is currently applied - with just under 50% of products now zero, compared to 27% in the EU’s CET.
The UKGT will make it easier for businesses to trade
The UKGT also retains tariffs on products across UK industries and sectors to help them compete on the global stage. Tariffs on products such as lamb, beef and poultry and finished cars will all see their tariff retained.
The Government has developed and tailored the UKGT to the needs of the whole UK economy. It was designed following a public consultation, which gave individuals and businesses across the UK an opportunity to provide their views and feedback. The Department for International Trade organised events with businesses and experts across the UK, including in the English regions and devolved nations, during the consultation process. The consultation received more than 1,300 responses.
The Government carefully considered all available evidence, including the consultation responses, in the development of the UKGT.
The summary of consultation responses and the Government’s response can be found on GOV.UK https://www.gov.uk/government/consultations/the-uk-global-tariff. Copies will be placed in the House libraries.
For the first time in almost fifty years, the UK has set its own tariff schedule, aimed at boosting prosperity, supporting British industry, making it easier to bring goods into the UK and reducing cost pressures for consumers.
The full schedule can be found on GOV.UK https://www.gov.uk/guidance/uk-tariffs-from-1-january-2021.