K Agriculture and food producers are supported by the UK Global Tariff announced on Wednesday. Key products such as beef, lamb, poultry, apples and pears are protected by ongoing tariffs, while raw ingredients such as cocoa, yeast and thyme are reduced to 0%.
Agrifultural producers of meat, lamb and poultry in the UK will be protected by maintained import tariffs, reducing the chances of being threatened by cheap produce from other countires. Key ingredients that are highly used by processors and manufacturers are having their tariffs cut to zero, in a bid to support UK industry.
Many products have been reduced to 0%, including vital ingredients such as baking powder (down from 6.1%), crude olive oil (down from €110/100kg), yeast (down from 12%), bay leaves (down from 7%), ground thyme (down from 8.5%) and cocoa powder (down from 8%).
Certain seasonal produce from growers in the UK will be further protected by maintained tariffs on locally grown fruit such as apples, which will benefit from 0% during summer months and 8% in the autumn/winter.
Ian Wright CBE, Chief Executive, FDF said:
“The FDF welcomes today’s announcement of the UK’s global tariff. The Government has taken on board FDF’s suggestions to maintain specific and compound tariffs on agrifood goods that limit exchange rate impacts on tariffs, and encourage the use of higher quality and value ingredients. This gives food and drink manufactures time to prepare for the application of these tariffs after 1 January 2021.
“This is a sensible step back from the temporary tariffs set out in March 2019. This approach will preserve essential negotiating capital for the UK in trade talks with the EU, US and Japan. That said, it is vital that the UK secures a trade deal with the EU before the end of the year to avoid serious damage to manufacturers and for consumers.
“It will take time for business to understand the implications of these tariffs. The FDF will work closely with both members and government to identify any concerns and ensure the best possible outcomes.”
While zero tariffs would benefit many people with cheaper prices, it’s important that UK producers and industries are protecetd from cheap overseas production. The integrity of tariffs must be protected in future trade deals, as highlighted by a joint statement from the four farming unions (NFU Cymru, NFU, Ulster Farmers’ Union and NFU Scotland).
“We are pleased the government has listened and maintained many of the safeguards currently in place for UK farmers under its new UK Global Tariff schedule. This is particularly important in fulfilling the UK government’s commitment not to undermine our high food and farming standards.
“It is worth remembering, however, that these tariffs are likely to be negotiated away as part of any trade deals that will be struck in the coming months, and so those deals must include strong provisions ensuring food imports are produced to the same standards required of our own farmers.”
“Not only will this help the government fulfil its vision of a sustainable and profitable UK farming sector but will also meet public demand that our standards are not undermined in future trade policy.”
“Although the overall position appears to support UK farmers, we need to examine and fully consider all the implications of the simplifications involved. For instance, it is still likely that the changes will lead to increased competition for some domestically produced commodities and we will need to understand the precise nature and impact of that.”
“We are also urging the government to provide clarity around its ability to adjust the tariffs announced today, in particular in the event that there is no negotiated agreement with the EU on a future relationship by the end of the year.”