The UK has announced its new tariff regime the-UK Global Tariff (UKGT)- on 19 May
For Turkey, UK’s aspiration is to continue with zero tariff trade on all goods traded in the EU-Turkey Customs Union, by implementing a FTA by the end of 2020
The UK has announced its new tariff regime the-UK Global Tariff (UKGT)- on 19 May. This will replace the EU’s Common External Tariff (CET) on 1 January 2021. The UKGT will apply to goods exported from countries with which the UK does not have a preferential agreement.
For Turkey, the UK’s aspiration is to continue with zero tariff trade on all goods currently traded in the EU-Turkey Customs Union, by implementing a UK-Turkey Free Trade Agreement by the end of 2020. UKGT will apply on goods outside the scope of the agreement.
The UKGT 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.
The UKGT will make it easier for businesses to trade with the UK, including by removing needless tariffs which create administrative burdens. All tariffs below 2% are gone.
Our tariff is simpler to use. We will round tariffs down, making them simpler for traders to use. We will also scrap the complex calculation (on products like biscuits) applied under the EU’s CET benefiting businesses and consumers alike.
The UKGT will promote a sustainable economy. We are cutting tariffs on over 100 products to back renewable energy, energy efficiency, carbon capture, and the circular economy through recycling and reducing single use plastics.
The UKGT will protect developing countries. Tariffs have been retained on goods such as vanilla (6%), plantains (16%) and bedlinen (12%) to support the preferential access of developing countries to the UK market.
The UKGT will encourage international imports. Tariffs have been removed on products that the UK does not produce or does not produce much of such as olives and freezers. Removing these tariffs will make it easier to export these goods to the UK. The UKGT will reduce cost pressures on exports to the UK, through the lower tariffs that are levied when they arrive into the UK as imports.
The UKGT allows the UK to expand its trading relationships through bold trade deals with partner countries including Turkey. The UK will use its independent position at the WTO to push for lower tariffs all over the world.
You can check the tariffs that will apply under the UK Global Tariff from 1 January 2021 by looking at the tool here