United Kingdom government publishes temporary tariff regime for no-deal Brexit

A piggy bank with a Euro note

London's No Deal Tariff Plan'Sledgehammer for UK Economy- Business IndustryCC BY 2.0 Images Money Piggy bank with Euro Note

In no deal, UK Government is committed to entering discussions urgently with the European Union and Irish Government to agree long-term measures.

But tariffs would be imposed on some imports from the EU.

And in theory, a dairy business in Northern Ireland could be at a competitive advantage when it comes to winning business in Great Britain, compared to a business in the Republic which will face tariffs.

The government said the measures would be "strictly temporary" and that its priority would be to enter into discussions urgently with the European Commission and the Irish government to jointly agree long-term measures to avoid a hard border.

Other food products such as beef and poultry will face a reduced rate compared with the rest of the world, but prices would still be expected to rise for shoppers.

Though - to avoid a hard border - there will be no tariffs on goods moving from Ireland to Northern Ireland under temporary no-deal Brexit plans announced by the United Kingdom government, tariffs will be imposed on any goods moving either through Northern Ireland to the rest of the United Kingdom or directly to the UK.

Several said a no-deal Brexit was now more likely and preparations for that scenario would be "intensified".

The government said it would not apply a tariff regime and customs border on goods transiting across the land border from Ireland to Northern Ireland but admitted that this created a "potential for exploitation" if those goods are then transported across the sea to mainland Britain for sale.

This table summarises applied UK tariffs in key sectors in a No Deal scenario
No tariffs for Irish goods entering NI in no-deal Brexit

MPs rejected the EU Withdrawal Agreement by an overwhelming majority - 391 voted against the deal compared to 242 in favour.

Zero tariffs would be applied to items such as footwear, aluminium and steel, machinery, paper and wood products, and weapons and ammunition.

To protect human, animal, and plant health, animals and animal products from countries outside the EU would need to enter Northern Ireland through a designated entry point, regulated plant material from outside the EU and high risk EU plant material will require certification and pre-notification before arriving in the UK.

Meanwhile, the Ulster Farmer's Union suggested that the plans announced on Wednesday would be equally damaging for Northern Irish farmers.

The government recognises that Northern Ireland's businesses and farmers will have concerns about the impact that the government's approach will have on their competitiveness.

The call from businesses in Northern Ireland since the vote to leave the European Union referendum has been for an end to uncertainty. These arrangements can only be temporary and short-term.

Under the new regime for Northern Ireland, goods arriving from the Republic will still be subject to the same Value-Added Tax and excise duty as at present.

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