Certain people seem to be getting the wrong idea about these new tariffs that the British government is imposing after Brexit. Yes, obviously, as all rational traders know, there should be no tariffs on anything ever. This also not being the system we’re about to gain as of Jan 1.
However, it is also true that there’s a few bits an’ bobs of detail that must be dealt with along the way. For example, here we’ve a whinge about coffee tariffs:
Here (left) are the UK's post-Brexit 2021 tariffs on coffee. 8% for decaf, 6% for non-decaf.
This whole argument was a massive red-herring as the tariff provided a margin of preference for poor countries on 0%. See EU tariffs (right). pic.twitter.com/ZVtkv3eRi8
— Jim Cornelius???? ???☕️? (@Jim_Cornelius) October 20, 2020
One way of reading that is that we’re right bastards because the EU allowed 0% tariffs on imports from poor countries while the UK system will have 6%.
Yes, yes, agreed, it’s the imports which are the benefit so it’s us here getting screwed but still. Except, well, it’s not actually true.
The 0% comes from the General Scheme of Preferences. We get to buy stuff from poor peeps – or at least peeps in poor countries – without taxing ourselves in the form of tariffs. The EU has such a system. So does the new and liberated UK system:
The UK Generalised Scheme of Preferences from 1 January 2021
The UK GSP will continue to provide trade preferences to the same countries as the EU’s GSP. There will be 3 frameworks:
least developed countries framework (LDCF)
These frameworks will replicate the same market access as the EU’s GSP.
Where there was a 0% tariff ‘cuz peeps wuz poor there will be a 0% tariff.
Amazingly, details matter.