Clarity On Tariffs In Case Of No-Deal Brexit Demanded By UK Lawmakers

Advertisment

Today, lawmakers said that the government of the United Kingdom should urgently reveal its plans for tariffs in the case of a no-deal Brexit after the media reported that taxes could be slashed for up to 90 percent of imports.

Earlier in the day, Liam Fox, the Trade Minister of the United Kingdom, informed lawmakers that senior ministers had reached a “basic agreement” regarding the extent to which it would impose reciprocal tariffs on goods from the European Union if it leaves the bloc without a deal on the 29th of March.

Tariffs would push up the costs for consumers, however, without them, some farms and factories in the United Kingdom could find it hard to compete.

However, with the details not finalised, Fox said that there was no agreement on whether to inform the parliament before it must decide on the 12th of March whether to accept an unpopular exit agreement that is negotiated with the European Union by Theresa May, the Prime Minister.

A Conservative lawmaker who chairs parliament’s Treasury Committee, Nicky Morgan, said that it was unacceptable to keep parliament in the dark. She urged the finance ministry to disclose full details before next week’s vote.

She stated: “At present, members of parliament are expected to vote blindly.”

The finance ministry of the United Kingdom said that it would “communicate a decision on what is market sensitive information … as soon as possible,” however, it did not commit to releasing the information before the vote.

Yesterday, Sky News reported that the government is planning to lower the tariffs on 80-90 percent of imports under a no-deal Brexit, which may benefit consumers, however, it will sharpen competition for many factories and farms in Britain.

Currently, the United Kingdom has tariff-free access to the markets of the European Union. It also benefits from trade deals with other countries. However,  if it crashes out of the bloc without transition arrangements, its exports will automatically face tariffs from the bloc.