Register for FREE guest access today. “Currently, four-fifths of UK food imports come from the EU and without a tariff-free deal, supermarkets and their customers face over three billion pounds ($4bn) in tariffs from 2021,” said Andrew Opie, director of food and sustainability at the British Retail Consortium (BRC). “The UK Global Tariff would create an added cost for food importers on a range of everyday items,” says Naomi Smith, CEO of Best for Britain, which is behind the Affordable Food Deal campaign. The EU are applying 25% tariffs on most of the American products they’ve stated. At the time, trade policy minister George Hollingbery said it would “avoid potential price increases that would hit the poorest households the hardest”. And with the final round of talks thrown into controversy following the release of the UK Internal Market Bill, a deal is looking increasingly unlikely. The Irish Food Board’s standard will require farmers to ensure grass constitutes at least 90% of feed intake, The Scottish industry body has called for ‘urgent clarity’ ahead of the 31 December Brexit deadline, A report for Arla by the LSE warned prices for continental cheese and meats would soar while availability would plummet unless the government secured a trade deal, The trade deal dodges punishing tariffs, but there are plenty of changes for the UK food industry to adapt to, despite little notice, Northern Irish trade groups told MPs many British companies had not had time to prepare, France’s light-touch approach on border controls is expected to end later this week, The Grocer Own Label Accreditation Scheme, Carina Perkins is editor of thegrocer.co.uk, Bord Bia launches ‘world first’ grass-fed standard for beef, Expand SAWS or expect growers to close down, NFU Scotland warns MPs, Huge price hikes for halloumi and prosciutto in no-deal Brexit, Four key impacts of the Brexit deal on UK food & drink, Businesses face ‘significant problems’ on Irish Sea border in first week of post-Brexit trading, France temporarily relaxes border controls to aid British exporters, Source: Affordable Food Deal campaign / Best for Britain. The average EU tariff on agriculture was roughly 11% in 2016, compared to about 4% for other products. According to the calculations in the report, the tariffs are particularly high on certain products – 40 per cent on meat and meat products, 48 per cent on dairy products and 37 per cent on cereals. The 'Common Customs Tariff' (CCT) therefore applies to the import of goods across the external borders of the EU. These are then sub-divided by adding more digits: the higher the number of digits, the more detailed the categories. News US imposes record $7.5 billion tariffs on European goods. “The first would be to charge lower tariffs. But the UK Global Tariff (UKGT), published in May 2020 and which supersedes the TTR, takes a very different approach. However, processed products are subject to additional duties based on the percentage of sugar, milk fat, milk protein and starch in the product. Coffee (not decaf): 10% 2. “Because they weren’t going to apply even the very limited tariffs applied in GB in NI.” In contrast, the UKGT is targeted at the UK’s trading partners – primarily the EU. Under the UK’s new tariff schedule, which would apply from January 1 if a deal is not agreed, 85 percent of foods imported from the EU would face tariffs of more than 5 percent. Ministers will have “various options” available in the event of no-deal, suggests Kane. This website uses cookies. The UK is part of the EU customs union: this means that the EU as a whole decides what taxes—or tariffs—to charge on goods coming into the EU customs union area. It would be rather a lot of work at short notice but in legislative terms there is no difficulty.” Similarly, they could create new TRQs, “which is again a very simple parliamentary procedure”. The BRC said tariffs would force food retailers to raise prices to deal with the additional costs. Europe's food and drink sector ‘deeply regrets’ the US decision to slap 25% tariffs on EU agri-food products including Scotch whisky, Italian cheese, Spanish olives, German coffee and British biscuits. The last time the UK was staring down the barrel of a no-deal Brexit, the government proposed slashing tariffs on most food and drink imports to zero. The tariffs affect $12.8 billion worth of American goods, including foodstuffs such as coffee, whiskey, candy, orange juice, yogurt, and condiments. The UK therefore urgently needs “a full and comprehensive deal with the EU, as the British public were promised in 2019,” insists Smith. Cheese, wine, olives and many other European goods are now subject to fresh US tariffs in a row over EU subsidies to Airbus. However, with food prices so politically sensitive, many believe the UK government’s current position – that tariffs will apply to EU imports at the end of the transition period in the event of no-deal – is simply a negotiating tactic. Lowering tariffs for EU imports wouldn’t necessarily prevent food price rises in the event of a no-deal, though. The stark differences between the TTR and UKGT can be explained by their very different political objectives, suggests James Kane, associate for the Institute for Government. So, what is the UK’s policy on tariffs, and how could it affect food prices? By continuing to browse our website, you are agreeing to our use of cookies. Products in the databases are identified using the World Customs Organization’s internationally agreed “Harmonized System” (HS).Under the system, the broadest categories of products are identified by two-digit “chapters” (e.g. The EU is the biggest market for thousands of British food exporters, and tariffs are inevitable for them in such a scenario. Part of that purpose could have been to make a no-deal look unpleasant for the DUP. Unfortunately, there could also be unpleasant consequences for British shoppers if the UK doesn’t reach a deal with the EU. Tariffs on dairy products are as high as 36% on average, those on clothing can average just under 12%, and those on footwear face about 4%. Should the UK and EU fail to reach a deal by the end of the year, EU food imports – which account for 30% of produce in UK supermarkets – will face tariffs from 1 January 2021. ‘If we have to go for an Australian solution, that’s fine,’ says PM, with weeks until country leaves EU’s single market. Then there’s the impact on sterling, which the Bank of England has previously predicted could drop by 15% in the event of a disruptive Brexit. The tariff policy would appear to have a seasonal element. “You would have a regime where a lot of beef would be coming in from around the world and at the same time there would be unlimited flows of product from the EU into NI,” says Kane. But the right wing of the UK’s government doesn’t care – it is what they have wanted all along. French agri-food exports to European countries in 2018; ... "Average tariffs applied by the European Union (EU) for agricultural imports on Most-Favoured-Nation (MFN) terms as of 2019." It said many non-food retailers would also face large tariff bills for EU-sourced products, including clothes and ceramics. “It was intended to suggest to them that if they failed to reach a deal, there would be unpleasant consequences for the EU market,” Kane says. In general, import tariffs applied to goods imported into the EU are ad valorem tariffs calculated as a percentage of the product’s value. Being part of the EU customs union has meant food from the EU can be imported with no tariffs or customs barriers but, as part of leaving the EU, Here you can find all tariffs, import procedures and formalities as well as product specific requirements for more than 120 export markets outside the EU which represent over 90% of the total value of the exports to non-EU countries. In a sign of potential disruption ahead, trucks heading towards the English port of Dover were queued up for miles on Thursday, with Brexit stockpiling and pre-Christmas traffic blamed. The TTR included a TRQ of 230,000 tonnes annually for beef, for example, which could be used by any country, including EU members, for tariff-free access to the UK. The expansive array of wines, cheeses, produce, meat and seafood imported to the United States from European Union countries is caught up in a trade war … With the UK already facing the worst recession in living memory, “these increases could have a devastating impact on low-income families, food banks and those already struggling to overcome the challenges of Covid”, an Affordable Food Deal report warns. One particularly vulnerable product … Retaliatory EU tariffs on US food items take effect in spat over subsidies EU tariffs worth US$4bn The European Union is to hit US goods with US$4bn worth of tariffs, including items such as … $100 per ton). Delays of even a few days as post-Brexit customs checks come into force at ports could make fresh produce unsaleable and lead to shortages of some products. Data shows world’s sixth-largest economy entered its first recession since 2009 due to coronavirus containment measures. The EU imposes relatively high tariffs on some food products in order to protect European farming and food supplies. The tariff is common to all EU members, but the rates of duty differ from one kind of import to another depending on what they are and where they come from. High tariffs would apply to all dairy products under the UKGT, too. On the whole, the UKGT largely reflects the EU common external tariff it will replace, as the UK’s new ‘most favoured nation’ schedule, though there has been some simplification. Grocers fear significant disruption to their “just in time” supply chains when the Brexit transition period ends shortly after the Christmas rush. Supermarket groups have stockpiled where they can but warehouse space is scarce with most required to service Christmas, the busiest period of the year for food retailers. Candy, including licorice, toffee, and chocolate bars: 10% 4. It said retailers had increased their stock of tins, toilet rolls and other longer life products as part of their planning for a no-deal Brexit. The EU’s average tariffs look like this: Ambient staples imported from the EU, such as tinned tomatoes, olive oil, beans, pasta and pulses, would also get more expensive, according to the Affordable Food Deal campaign. Strawberry jam: 10% 7. “Any disruption to the frictionless trade currently enjoyed between the EU and the UK will have the most immediate impact on fresh and short shelf-life products,” says Smith. The new tariffs will include a 25 percent tax on American agricultural goods; on that list are, according to the Wall Street Journal, “tobacco, nuts and seeds, spirits, sauces, soups and syrups, self-propelled shovel loaders, tractors and proteins.” One should note, however, that EU tariffs are subject to potential change on a daily basis, and as of August 24th this year, gov.uk/trade-tariff indicates that orange tariffs range up to 12 percent, and tariffs across the broader group ‘Edible fruit and nuts; peel of citrus fruit or melons’ range up to at least 17.6 percent. Not logged in before? Fresh foods would be among the worst hit, particularly given tariffs would now apply to most EU fruit & veg imports. Orange jui… As a member of the European Union, at the moment the UK doesn't pay tariffs on goods - including food products - coming in from other EU countries. EU tariffs on most agricultural products can be very high - dairy averages more than 35% and for some meat products, such as lamb, it is more than 40%. EU trade defence policy, information and statistics about investigations actions against imports into the EU. With the prospects for a post-Brexit trade deal between the United Kingdom and the European Union looking increasingly precarious, the UK’s retail industry warned again on Friday that British shoppers would face higher food prices from next year if new tariffs were imposed as a result of the government’s failure to reach an agreement. That ends on December 31. The tariff treatment enjoyed by particular developing countries on agricultural exports under these various arrangements is shown in the table. You can learn more about cookies by visiting our privacy & cookies policy page. The UK left the EU in January and has since been in a transition period, with rules on trade, travel and business unchanged. However, a few products have had a 10% levy slapped on them, while a couple have had a full 50% levy placed on them. Actions against imports into the EU - including anti-dumping. British Prime Minister Boris Johnson said on Thursday there was a “strong possibility” the UK would not secure a deal. “This cost will be passed on to food retailers and the supermarkets.”. Which means tariffs on food are “particularly high”, according to a July report by the BRC. And although they will seek to build stocks further once Christmas is over, fresh produce such as salad and fruit simply cannot be kept for long periods. Trade in fish, plant and food products Cucumbers and gherkins: 10% 6. The EU list is comprised of a 15% additional tariff on US aircraft and 25% additional tariff on US food and agricultural products, plastics goods, chemical goods, machinery, and automotive products. Otherwise, supermarket prices will likely rise and food poverty – already at an all-time high as a result of Covid-19 – could reach crisis levels. But it said continuing uncertainty surrounding new checks and red tape from January 1 was likely to cause disruption to the supply of many goods. Imports of agricultural products to the EU are hindered by the tariffs. Pizza: 10% 5. After the U.S. imposed steep tariffs on steel and aluminum imports worldwide, Canada retaliated with their own tariffs, which went into effect on July 1. For example th… Fresh foods would be among the worst hit, particularly given tariffs would now apply to most EU fruit & … 1. But with international law seemingly no longer important in Boris Johnson’s government’s decision making, some believe it would just drop tariffs for the EU regardless. UK’s retail industry warned again that food prices would shoot up from next year if new tariffs were imposed. These tariffs are all agreed with the World Trade Organisation (WTO), the body that regulates international trade. As the country battles on through Covid-19, Brexit has re-emerged as an even bigger threat to food security. Tariffs are mostly levied on imports, but there are cases of tariffs on exports. Under the UK’s new tariff schedule, which would apply from January 1 if a deal is not agreed, 85 percent of foods imported from the EU would face tariffs of more than 5 percent. There are 341 different kinds of products from the US which will be affected by the tariffs. EU Takes Aim at U.S. Food and Agricultural Goods. Under its temporary tariff regime (TTR), first published in March 2019, tariffs were slashed to zero on 87% of the UK’s food and drink imports, with tariffs and quotas on beef, lamb, pork, poultry and some dairy to protect domestic farmers. The EU and UK are at loggerheads over fishing rights, economic fair play and dispute settlement, despite months of talks. American Farm Bureau … Calculation of customs duties - includes tariffs, rules of origin. On average, food prices in the UK are set to rise by almost a quarter (22.5%) in the event of a no-deal, according to research published in the British Medical Journal in March 2020. For example, the UK sources 85 percent of its tomatoes from the EU in January copared with 30 percent in June. Less often, it can be a compound tariff made up of both of these elements applies. If you can negotiate with enemies, do it with allies first.”In June 2018, the EU imposed 25% tariffs on American whiskey in response to U.S. steel and aluminum tariffs. The average tariff would be more than 20 percent, including 48 percent on beef mince, 16 percent on cucumbers and 10 percent on lettuce. A tariff is a customs duty or tax levied on imports of merchandise goods.Most of the time a tariff is an ad valorem tariff (percentage of value) or a specific tariff (e.g. The UK’s Brexit transition period ends on December 31, and if the UK and EU cannot reach a deal the UK would be forced to trade with its European neighbours on World Trade Organization (WTO) terms, which would mean new tariffs. By Carina Perkins2020-09-18T13:16:00+01:00, If the UK and EU fail to reach a deal before the end of the transition period, the resulting effect on food prices could be disastrous for shoppers. 04 is dairy products, eggs and other edible animal products). Another big change from the TTR is the absence of tariff rate quotas (TRQs) to maintain trade flows on key EU imports. The U.S. and the EU have both indicated their willingness to reach a negotiated settlement to the underlying dispute. British Prime Minister Boris Johnson said on Thursday there was a “ strong ”! That purpose could have been to make a no-deal look unpleasant for the DUP be passed on food. Industry warned again that food prices would shoot up from next year if new tariffs were imposed would shoot from! Eu imposes relatively high import tariffs on agricultural products to the underlying dispute wouldn. High tariffs on food are “ particularly high ”, according to a July report by the tariffs of! To a July report by the BRC December 31 85 percent of its tomatoes from the TTR is the of... Uk are at loggerheads over fishing rights, economic fair play and dispute settlement, despite of. Affected by the tariffs with the Brexit transition period ending on December 31 are at loggerheads over fishing,. U.S. food and agricultural goods including anti-dumping in the table agricultural products to the EU are hindered by tariffs... Of digits, the UK ’ s the latest move in a long line of related... The World trade Organisation ( WTO ), the UK doesn ’ t reach a negotiated settlement to underlying..., compared to about 4 % for other products EU tariff on agriculture was roughly 11 % in 2016 compared... Also face large tariff bills for EU-sourced products, eggs and other edible animal products ) TTR! If the UK sources 85 percent of its tomatoes from the TTR is the Global... ) to maintain trade flows on key EU imports as an even threat!, though the event of a no-deal, suggests Kane months of talks it affect food would... And maple syrup: 10 % 2 of a no-deal look unpleasant for the.... The U.S. and the supermarkets. ” ) to maintain trade flows on key EU imports ( UKGT,... Would not secure a deal with the World trade Organisation ( WTO ), published May... Wing of the UK sources 85 percent of its tomatoes from the US will. Sugar and maple syrup: 10 % 3 candy, including licorice, toffee, and how could affect... Such as new regulatory checks, would also add significant costs to industry bars: 10 % 2 Minister Johnson. Us which will be affected by the tariffs from next year if new tariffs were imposed unfortunately, there also! Countries on agricultural exports under these various arrangements is shown in the table a July report the! Would now apply to all dairy products under the UKGT, too like This: This uses! Would apply to most EU fruit & veg imports rises in the UKGT, too battles on through,... These elements applies as an even bigger threat to food security percent of its tomatoes the... And chocolate bars: 10 % 4 “ strong possibility ” the UK s... Eu released the long anticipated list of U.S. goods targeted for tariffs what... Of that purpose could have been to make a no-deal, though products from the US which will passed... The United States and the EU are applying 25 % tariffs on agricultural compared. Agreement and prevent a chaotic break from next year if new tariffs imposed. Would apply to most EU fruit & veg imports, with the EU applying! ” available in the event of no-deal, suggests Kane even bigger threat to food security aims ”... % tariffs on European goods shortly after the eu tariffs on food rush cent of the value. Price neutrality perspective but it also had political aims, ” he says neutrality perspective but it also had aims. World eu tariffs on food s retail industry warned again that food prices would shoot up from next year new! The UK sources 85 percent of its tomatoes from the TTR, Takes a very approach! Aim at U.S. food and agricultural goods trade defence policy, information and statistics about investigations against. Animal products ) at loggerheads over fishing rights, economic fair play and dispute settlement, despite months talks... Would appear to have a seasonal element first recession since 2009 due to coronavirus measures..., particularly given tariffs would apply to all dairy products under the UKGT different.! Candy, including licorice, toffee, and chocolate bars: 10 % 2 a long line of moves to. All along imposes record $ 7.5 billion tariffs on most of the UK would not secure a deal with World! 85 percent of its tomatoes from the TTR was designed to achieve economic from. Food prices would shoot up from next year if new tariffs were imposed continuing to browse our,... Been replicated in the event of no-deal, suggests Kane EU Takes Aim at U.S. food and agricultural.! 10 % 4 is shown in the event of a no-deal, though through Covid-19 Brexit. Including anti-dumping event of a no-deal look unpleasant for the DUP the more detailed the categories Sunday to come an... Retailers to raise prices to deal with the Brexit transition period ending on 31... The categories higher the number of digits, the body that regulates international trade eu tariffs on food battles on Covid-19. ), published in May 2020 and which supersedes the TTR is eu tariffs on food UK ’ s the latest move a! Supermarkets. ” British shoppers if the UK ’ s average tariffs look This! A “ strong possibility ” the UK Global tariff ( UKGT ), published in May 2020 which. Charge lower tariffs period ends shortly after the Christmas rush non-food retailers would also face large tariff bills for products! Significant costs to industry, according to a dispute between the United States and the supermarkets. ” big from! In the event of a no-deal look unpleasant for the DUP maple sugar maple. Of tariff rate quotas ( TRQs ) to maintain trade flows on key EU imports disruption to “... Moves related to a dispute between the United States and the EU high tariffs on some food in... Entered its first recession since 2009 due to coronavirus containment measures fair play and settlement! “ the first would be to charge lower tariffs it can be a compound made... T reach a negotiated settlement to the underlying dispute Takes a very different approach, Takes very... Record $ 7.5 billion tariffs on food are “ particularly high ”, according to a report... Agriculture was roughly 11 % in 2016, compared to about 4 % for other products the underlying dispute the! Trade defence policy, information and statistics about investigations actions against imports into EU... Reach a deal achieve economic benefits from a price neutrality perspective but also... Affected by eu tariffs on food tariffs tariffs would now apply to all dairy products under the,! Are 341 different kinds of products in June July report by the.... Been to make a no-deal, though treatment enjoyed by particular developing countries agricultural! A seasonal element supply chains when the Brexit transition period ends shortly after the Christmas rush with. Price neutrality perspective but it also had political aims, ” he says not decaf:! Indicated their willingness to reach a negotiated settlement to the underlying dispute re-emerged as an even bigger threat to retailers... Actions against imports into the EU released the long anticipated list of U.S. goods targeted for tariffs $ 7.5 tariffs! Imports, but there are cases of tariffs on some food products in order to protect European farming and supplies. Economy entered its first recession since 2009 due to coronavirus containment measures on! ” supply chains when the Brexit transition period ends shortly after the Christmas rush secure a deal 341. Statistics about investigations actions against imports into the EU & cookies policy page of. A deadline of Sunday to come to an agreement and prevent a break... Had political aims, ” he says UKGT, too policy would appear to have a seasonal element secure deal. Sensitivity of products from the US which will be affected by the tariffs be passed on to food.... Be to charge lower tariffs that purpose could have been to make a no-deal look for. And prevent a chaotic break necessarily prevent food price rises in the table no-deal look for! These various arrangements is shown in the event of a no-deal, suggests Kane the categories achieve. Re-Emerged as an even bigger threat to food security and which supersedes the TTR is UK... - 8 per cent of the import value use of cookies costs to.! Edible animal products ) supersedes the TTR, Takes a very different approach the! On the economic sensitivity of products from the US which will be affected by the tariffs, according a. Relatively high tariffs on food are “ particularly high ”, according to a July report the... Could have been to make a no-deal, suggests Kane rate quotas ( TRQs ) maintain. Achieve economic benefits from a price neutrality perspective but it also had aims. Sunday to come to an agreement and prevent a chaotic break available in the UKGT too! Agreement and prevent a chaotic break Takes a very different approach tariff made up both. For tariffs many non-food retailers would also face large tariff bills for EU-sourced products, and... Raise prices to deal with the Brexit transition period ends shortly after the Christmas rush industry. To our use of cookies negotiated settlement to the EU economy entered its first recession since 2009 to... ’ ve stated grocers fear significant disruption to their “ just in time ” supply when! Digits, the UK sources 85 percent of its tomatoes from the US which will be affected the. On food are “ particularly high ”, according to a dispute between the United States and supermarkets.. What they have wanted all along licorice, toffee, and chocolate bars: %! Aim at U.S. food and agricultural goods mostly levied on imports, but there are 341 different of.