UK International Trade Secretary Dr Liam Fox announced a range of post-Brexit trade remedies yesterday that would be implemented post-Brexit. Dr Fox said that 43 of the trade tariffs currently in place that apply to imports from non-EU countries would be transitioned into UK law and 66 of those designed to protect producers from unfair competition would be scrapped.
Thai sweetcorn, Chinese mandarins and solar glass would be just a few of the products on which tariffs would be scrapped.
Higher tariffs would remain however on aluminium wheels, tyres, ceramics and kitchenware from China. Tariffs would also be retained on steel products from various countries including Belarus, Brazil, China, Russia and the US.
Chinese products have been particularly penalised due to the tendency for dumping them on international markets and very low prices.
Secretary of State for International Trade Dr Liam Fox. Photo: Paul Grover
To protect sensitive agricultural sectors, and in response to the concerns expressed by many British farmers that their business would be damaged by a flood of cheap imports, tariffs will be placed on certain products such as lamb, beef, cheese and milk, a decision that will see prices of EU imports increase in line with the same products from outside the bloc.
The UK will also retain the EU's 10% import duty on finished cars.
“If we leave the EU 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,” a UK government spokesperson said.
Dr Fox said of the tariffs that: "The decision on whether to maintain measures was based on whether those measures mattered to the UK. We are scrapping measures that don't significantly benefit British businesses and this will see savings for people throughout the country."
Dr Fox also said that there would be a review of the tariffs to see if they were effective or needed changing.
Gareth Stace, Director General of trade body UK Steel welcomed the announcement but raised questions about the UK's readiness to deal with the enormity of the task and called for an extension to the transition period.
“We warmly welcome the confirmation from the Government that 15 anti-dumping tariffs crucial to UK steel producers will be transitioned over in time for Brexit. These measures are essential to the future competitiveness of steel production in the UK," said Mr Stace.
He caveated his statement however by saying: “This is not to suggest that we believe the UK is adequately prepared to take on full responsibility for trade remedies in just a months’ time. The UK’s Trade Remedies Authority still does not legally exist, lacks substantial collective expertise, and is still in the process of recruitment and training."
"Even a highly experienced authority would struggle with the sheer volume and complexity of reviewing all the transitioned measures, implementation of the UK’s new steel safeguards as well as taking on a brand new investigation into dumping and subsidies. UK steel producers are at risk of exposure to unfair trading practises whilst the fledgling Trade Remedies Authority wrestles with this mammoth task and plays catch-up with its EU counterpart."
“This is yet another example exposing the sheer folly of a no-deal Brexit. A withdrawal agreement accompanied by a suitably long transition period would provide the Trade Remedies Authority with almost two years to ready itself properly for its new role. It is the only sensible option.“
Further announcements regarding the tariffs are expected by the end of this week following private conversations with industry and agricultural stakeholders.
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