International

U.K. unveils tariff plan for ‘no-deal’ scenario

Ahead of the parliamentary vote on whether MPs want to rule out crashing out of the EU without a deal, the government published details of a temporary tariff regime that would apply to goods in the event of a no-deal Brexit.

While tariffs on 87% of goods would be reduced to zero as part of the 12-month plan, tariffs would apply to certain industries, including the farming sector, and to finished vehicles to support the automotive sector. To avoid disruption on supply chains, carmakers relying on EU supply chains — such as Jaguar Land Rover — won’t face additional tariffs on car parts, the government said.

“Our priority is securing a deal with the European Union as this will avoid disruption to our global trading relationships. However, we must prepare for all eventualities,” said Trade Policy Minister George Hollingbery. The government has also said it would temporarily take steps to avoid new border checks on goods at the border between Ireland and Northern Ireland, for goods that would remain on the island. However, its plans have done little to allay concerns of business.

The EU also expressed concerns about the U.K.’s plans, in particular the plan to apply different tariffs on the island of Ireland to elsewhere in the U.K.. The EU will apply standard WTO tariffs on imports from the U.K.

Source: thehindu.com

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