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Written question asked by Jo Platt (Labour) on Tuesday, 17 July 2018, in the House of Commons. It was due for an answer on Monday, 23 July 2018 (named day). It was answered by Mel Stride (Conservative) on Monday, 23 July 2018 on behalf of the Treasury.

UK Trade with EU

Question

To ask the Chancellor of the Exchequer, with reference to paragraph 16b on page 17 of the white paper, The Future Relationship between the United Kingdom and the European Union, cm. 9593, what estimate his Department has made of the (a) financial cost and (b) potential job losses resulting from the Government's policy to require refunding of tariffs on four per cent of UK goods trade.

Answer

On 12 July, the government published a White Paper setting out a clear proposal for the future relationship the UK wants to build with the European Union. In this paper the government proposed a new Facilitated Customs Arrangement (FCA) with the EU. The FCA seeks to ensure that we promote the greatest possible trade with both the EU and the rest of the world.

The government is seeking to maximise the number of traders who will not need to interact with a voluntary repayment mechanism. For businesses that would be eligible for a tariff repayment, the government assesses that this would lead to neither net costs nor job losses for these businesses. This is because businesses would only enter into the voluntary repayment mechanism if they stand to benefit overall from the UK’s independent trade policy. The Government assesses that the eligibility for a repayment is most likely relevant to imports of intermediate goods from non-EU countries for which a tariff differential could arise which is equivalent to around 4% of total UK trade in goods. Further detail is set out in section 1.2.1 of the publication.

Secondary information

Type
Written question
Reference
165181
Session
2017-19
Related items
Transferred
Yes
Subjects
Import duties UK trade with EU Brexit UK relations with EU
Link
View this Written question on www.parliament.uk