BREXIT MEANS BETTER TRADE
Summary:
Even before the UK Developing Countries Trading Scheme (DCTS) was announced, the UK Global Tariff (UKGT) had already made improvements.
The UKGT refined and simplified the UK’s applied tariff regime at the WTO, removing a whole host of so-called “nuisance tariffs” lower than 2.5%, where the hassle of collecting the tariff is more effort than it is worth. The UKGT also introduced tariff bandings, in a further simplification, and removed tariffs on products the UK does not produce but the EU does.
These changes are not only good for the UK, but also for trade with the wider Commonwealth – as explained by Nigeria’s President Buhari: “Already [the UKGT] has reduced, removed or simplified tax on thousands of imported goods, an important step in reconfiguring Commonwealth trade”.
Explanation:
Even before the UK Developing Countries Trading Scheme (DCTS) was announced, the UK Global Tariff (UKGT) had already made improvements.
The UKGT refined and simplified the UK’s applied tariff regime at the WTO, removing a whole host of so-called “nuisance tariffs” lower than 2.5%, where the hassle of collecting the tariff is more effort than it is worth. The UKGT also introduced tariff bandings, in a further simplification, and removed tariffs on products the UK does not produce but the EU does. These changes are not only good for the UK, but also for trade with the wider Commonwealth – as explained by Nigeria’s President Buhari: “Already [the UKGT] has reduced, removed or simplified tax on thousands of imported goods, an important step in reconfiguring Commonwealth trade”
The value of UK exports to the Commonwealth increased by 23% year on year in 2022 to over £83 Billion, while the value of imports from the Commonwealth increased by 30% to over £74 Billion.
Reference: https://telegraph.co.uk/news/2022/04/25/can-make-commonwealth-real-global-power/
Reference: https://tradetalkspodcast.com/podcast/130-so-you-want-to-design-a-tariff-schedule/
Reference: https://commonslibrary.parliament.uk/research-briefings/cbp-8282/