The UK Global Tariff aims to ensure that UK businesses compete on fair terms with the rest of the world. Ultimately, this will also help to make it easier to trade, drive up investment, and deliver more quality jobs across the UK.
More specifically, goods coming into the UK will no longer be subject to the EU’s Common External Tariff, with the UK’s new Global Tariff Policy coming into effect on 1 January 2021 for imports from any country the UK does not have a free trade agreement with.
This comes as the Government sets out details of the UK’s approach to negotiating free trade agreements with countries including the US, Australia, New Zealand and Japan.
The new UK Global Tariff Policy will apply to goods from countries around the world unless the UK has different arrangements in place, such as a free trade agreement, or a tariff suspension applies. Tariffs levied by other countries on UK exports will be based on that country’s own MFN tariff schedule and whether the UK has a trade agreement in place with them.
The UK will allow imports from countries that UK has a free trade agreement or other arrangement with, and with the world’s poorest countries continuing to access the UK at lower tariffs as set out in those agreements.
Finally, in line with the Northern Ireland protocol, special arrangements will apply to goods entering Northern Ireland.