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U.K. Prepares For New Terms Of Trade In Case Of No-Deal Brexit

U.K. Prepares For New Terms Of Trade In Case Of No-Deal Brexit

Britain has said that most import tariffs will be eliminated if the European Union comes without a transition deal.

Further, the border between Northern Ireland and Ireland will not have customs checks. Temporary measures are taken to keep the non-Brexit deal with a minimum impact on the economy.

Wednesday is an important day regarding the transition agreement to be taken by Britain while leaving the EU. March 29 is just a few days ahead and the departure date has everyone wary.

The world’s fifth largest economy has to keep its employers safe from job losses, inflation and other effects that would affect the people. The no-deal tariff plan will last for at least a year and plans should be made to minimize the pain on the economy.

Currently, 80 percent of the imports can be accessed tariff-free. This will be raised to 85 percent. Metals like aluminum and steel will be exempted from tariffs. Arms and ammunition, wood products, paper, and footwear will also come under tariff exemption.

Carmakers will continue to be protected. Similarly, those involved in dairy farming, and those trading in lamb, pork, beef, and poultry will also be protected.

However, farmers who deal with eggs, fruits, vegetables, and cereals will not come under tariff protection. In fact, they will have to compete with cheaper products from other countries.

If tariffs on imports are cut, the British will not have to face a jump in inflation, in case a no-deal Brexit occurs.

Food imports and cars from the European Union will be the most highly hit segments as the new plan will involve tariffs.

Prime Minister May says that she does not want a no-deal Brexit. The Finance Minister Philip Hammond is trying to woo the opposition to agree to the terms of the PM.

Stephen Barclay the Brexit Minister, calls the measures as “modest liberalization.

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