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You can find the current article at its original source at https://www.theguardian.com/business/2017/nov/07/tariffs-and-trade-in-the-real-post-brexit-world
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| Version 0 | Version 1 |
|---|---|
| Tariffs and trade in the real post-Brexit world | Tariffs and trade in the real post-Brexit world |
| (2 months later) | |
| Letters | |
| Tue 7 Nov 2017 18.53 GMT | |
| Last modified on Mon 27 Nov 2017 14.10 GMT | |
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| I read with a sense of deja vu the letter by Tim Worstall (6 November) in which he suggested that charging zero tariffs on imports would make us richer. I’m still confused about how this might be the case. | I read with a sense of deja vu the letter by Tim Worstall (6 November) in which he suggested that charging zero tariffs on imports would make us richer. I’m still confused about how this might be the case. |
| True, charging zero tariffs on foreign goods should make them cheaper, provided that we ignore the drop in the value of the pound associated with Brexit (which, of course, makes imported goods more expensive), but how do we pay for these goods if other countries insist on tariffs on our products, potentially reducing our exports? Further, as tariffs are a form of tax, how might we compensate for the loss of revenue? | True, charging zero tariffs on foreign goods should make them cheaper, provided that we ignore the drop in the value of the pound associated with Brexit (which, of course, makes imported goods more expensive), but how do we pay for these goods if other countries insist on tariffs on our products, potentially reducing our exports? Further, as tariffs are a form of tax, how might we compensate for the loss of revenue? |
| Surely zero import tariffs with existing export tariffs would adversely affect our trade balance, and make the country – or at least those of us who are not rich – poorer. Imports alone do not generate wealth for any but the few rich importers. Or is that the point? | Surely zero import tariffs with existing export tariffs would adversely affect our trade balance, and make the country – or at least those of us who are not rich – poorer. Imports alone do not generate wealth for any but the few rich importers. Or is that the point? |
| It would seem to be logical that it is not imports that is the problem in post-Brexit British trade, but exports, with the tariff and non-tariff barriers to trade.Karl JonesLiverpool | It would seem to be logical that it is not imports that is the problem in post-Brexit British trade, but exports, with the tariff and non-tariff barriers to trade.Karl JonesLiverpool |
| • As a business that has long struggled with high EU import tariffs making us uncompetitive, I was interested to read your piece suggesting families could see £930 a year added to their shopping bill (Cost of Brexit: £930 a year on shopping bills, 4 November). | • As a business that has long struggled with high EU import tariffs making us uncompetitive, I was interested to read your piece suggesting families could see £930 a year added to their shopping bill (Cost of Brexit: £930 a year on shopping bills, 4 November). |
| Our understanding is that the UK government will have consumer welfare as a top priority when making choices about post-Brexit legislation. That is why the recently published customs and trade white papers propose giving the government the tools to lower tariffs and establish tariff rate quotas – to avoid the outcome the article predicts. | Our understanding is that the UK government will have consumer welfare as a top priority when making choices about post-Brexit legislation. That is why the recently published customs and trade white papers propose giving the government the tools to lower tariffs and establish tariff rate quotas – to avoid the outcome the article predicts. |
| World Trade Organization rules do not “require” the UK to apply the European Union’s maximum import tariff. Members are free to apply that as a maximum, or anything below that, down to zero – either permanently or temporarily. | World Trade Organization rules do not “require” the UK to apply the European Union’s maximum import tariff. Members are free to apply that as a maximum, or anything below that, down to zero – either permanently or temporarily. |
| Of course, these decisions will need to be balanced against their impact on UK farmers. But it is wrong to suggest that the government is planning to penalise poor families in the event of no deal with the EU, especially if the only other reason to do it is to keep bargaining chips for some future far-off free trade agreement negotiation.Gerald MasonSenior vice-president, Tate & Lyle Sugars | Of course, these decisions will need to be balanced against their impact on UK farmers. But it is wrong to suggest that the government is planning to penalise poor families in the event of no deal with the EU, especially if the only other reason to do it is to keep bargaining chips for some future far-off free trade agreement negotiation.Gerald MasonSenior vice-president, Tate & Lyle Sugars |
| • Join the debate – email guardian.letters@theguardian.com | • Join the debate – email guardian.letters@theguardian.com |
| • Read more Guardian letters – click here to visit gu.com/letters | • Read more Guardian letters – click here to visit gu.com/letters |
| International trade | |
| Brexit | |
| Consumer affairs | |
| Household bills | |
| European Union | |
| letters | |
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