Brexit: Government pledges to cut tariffs if there’s no deal
The government has pledged to cut tariffs on lorries imported into the UK, and apply new tariffs on clothing imports, in the event of a no-deal Brexit.
For the first year after the UK leaves the EU, the government will reduce the tariff from 22 per cent to 10 per cent.
The move comes after the Road Haulage Association (RHA) pushed the government to axe the tariff altogether.
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Lorries sold to the UK are currently not subject to a tariff, something the RHA says should continue in the event of a no-deal Brexit.
On clothing products, the government said it would apply new tariffs to ensure preferential access currently enjoyed by developing countries is “maintained”.
Meanwhile tariffs on bioethanol will be adjusted to retain support for UK producers, “as the supply of this fuel is important to critical national infrastructure”, the government said.
These three amendments are designed to help UK supply chains in the event of a no deal Brexit, as well as keeping prices down for consumers “and ensure that we are fully prepared to leave the EU on October 31 whatever the circumstances”.
The move comes in a critical week for talks, with both sides identifying this weekend as the cut-off point for agreeing a deal, ahead of next week’s European Council.
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