On Tuesday 19 May, London published its new tariff regime, the “UK Global Tariff” (or ‘UKGT’), which will succeed the European Union’s Common External Tariff (CET) on 1 January 2021, at the end of the transition period.
The UKGT, which is lower than the CET, will abolish tariffs “on a wide range of products”, simplifying nearly 6,000 tariff lines, reducing the administrative burden on businesses and eliminating “nuisance tariffs” (i.e. below 2%), the UK Department for International Trade said.
As a result, 60% of trade will enter the UK duty free under World Trade Organisation conditions. These tariffs will apply to all trading partners whose relations are not governed by free trade agreements (FTAs) or by the generalised system of preferences (GSP) granted to developing countries. Within 3 years, London hopes to weave a network of bilateral FTAs covering 80% of its trade.
Specific provisions have also been laid down for Northern Ireland in line with the Protocol on Ireland and Northern Ireland, which allows Northern Ireland to remain in the UK customs territory while benefiting from the single market. (Original version in French by Hermine Donceel)