USDBC has been expressing strong support for a US/UK trade agreement as an industry trade priority with both UK and U.S. government officials. The UK has been the top export market for US dry beans within the EU/Europe. We have had high hopes that Brexit could bring an expeditious end to the current retaliatory tariffs of 25% on US dry bean imports into the EU. While we still don’t have a sense of when those tariffs will be lifted, in late February 2020, the UK Government conducted a public consultation to determine tariff levels for agricultural imports after December 31, 2020 when the Brexit transition period ends. USDBC submitted commentary requesting zero duty tariffs. This was officially accepted and published on May 19, 2020 as part of the UK’s new ‘Most Favoured Nation’ (MFN) tariff regime called the UK Global Tariff. This replaces the EU’s Common External Tariff as of 1 January 2021. According to the UK Department For International Trade, The UK Global Tariff almost doubles the number of products that are tariff free, relative to what is currently applied, with 47% of products now zero, compared to 27% in the EU Common External Tariff. The UK Global Tariff ensures that 60% of trade will come into the UK tariff free on WTO terms or through existing preferential access from January 2021.
The 25% retaliatory tariffs remain in effect but once these are removed, the US will have zero duty tariffs on all exports of dry beans to the UK. Despite lack of progress on removal of retaliatory tariffs, as the UK is still bound by EU trade rules, there is cause for optimism as part of a strengthened trade relationship and momentum towards an agreement. We will keep you posted as trade talks continue.
