THE UK IS SCHEDULED TO LEAVE THE EUROPEAN UNION ON THE 29TH MARCH WITH OR WITHOUT A DEAL.
The 29th March marks two years since the triggering of article 50, the official procedure to leave the European Union.
Despite hundreds of hours of negotiations between the UK and the EU, an agreement which both parties can agree with has yet to be reached.
The UK is against the Customs Union backstop, which the EU claims is ‘part and parcel’ of the withdrawal agreement.
The Customs Union backstop would see the UK remain a member of the Customs Union to avoid a hard border with the Republic of Ireland in the event that a trading agreement could not be reached during the transitional period.
This evening, Sky News has seen details of the governments plan for a no deal Brexit and what it would mean for trade.
Being a member of the Customs Union forces a common tariff on external goods to be applied which enter the UK, however, the government is set on “unilaterally scrapping tariffs on up to 90% of products” in the event of a no deal Brexit.
Sky said: “Sky News has seen details of tariffs the UK intends to impose on imports in the event of a ‘no-deal’ Brexit which include plans to unilaterally scrap tariffs on up to 90% of products but retain them on some sectors including cars and dairy.”
This could result in food and other products being far cheaper after Brexit, lowering the cost of living and increase disposable income for UK citizens.
Details of the plans will be published if May fails to get parliamentary backing for her EU withdrawal bill next week.
“According to government sources the 10-20% of more sensitive items which will retain their protection includes cars, beef, lamb, dairy and some lines of textiles” claimed Sky News.
Tariffs do protect domestic producers so the governments plan to slash tariffs on overseas goods could impact UK industries and producers.
The Cabinet claims that the purpose of the tariff cut is to keep prices attractive.
Governments insiders claim that the debate over what tariffs should apply in the event of a no deal has been heated between the Treasury, DiT and other government departments.
According to insiders, this move would represent the single biggest liberalisation in British history.
The decision to slash tariffs without striking trade agreements first has worried some that British leverage will be lost in future negations.
Personally, I see this as a Brexit boost and will be a great way to decrease price and urge British business to be more competitive and efficient due to greater competition.
What do you think?
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