Wednesday, October 28, 2020

Shoppers may pay extra after no-deal Brexit

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Image copyright Getty Images Shoppers will really feel the influence of a no-deal Brexit at grocery store tills, the British Retail Consortium has warned.The BRC stated tariffs would add £3.1bn a yr to the price of importing food and drinks except the UK and EU can strike a free commerce settlement.”If there is no deal before Christmas, the increase in tariffs will leave retailers with nowhere to go other than to raise the price of food,” it stated.The authorities stated it was “working hard” to reach a deal.Andrew Opie, director of meals on the BRC, stated coronavirus was “already making life hard for consumers”, notably these on decrease incomes.”A no-deal Brexit will have a massive impact on their ability to afford essential goods,” he added.The EU is the UK’s largest buying and selling associate and the supply of 80% of its meals, the BRC stated.But if the UK is unable to reach a cope with the bloc, the typical tariff on meals it imports can be over 20%, the commerce physique warned.Those tariffs embrace a 48% levy on beef mince, 16% on cucumbers and 57% on cheddar cheese.Under a brand new tariff schedule, set to come back into impact in January, 85% of meals imports from the EU shall be topic to a tariff of greater than 5%, the BRC stated. The longstanding post-Brexit promise is of free commerce offers that can lower taxes on imports – referred to as tariffs – and decrease costs for shoppers. But ought to no commerce deal be reached with the EU, from January, one of the noticeable impacts would be the new UK Global Tariff making use of to imports of food and drinks from the EU. Understandably, supermarkets have labored out the price of making use of these new tariffs on this British Retail Consortium train on their very own provide chain information – the entire is £3.1bn subsequent yr, versus zero this yr. That is price about £112 per family. As an illustration, if your complete value of the tariff have been handed on to shoppers a £Three pack of Irish beef mince may value £4.08 and Spanish cucumbers may value 47p as a substitute of 43p.In follow, some – however not all – these value will increase can be handed on, and a few decrease tariffs on imports from different locations may offset these rises.But issues about tariffs on EU food and drinks imports are one of many points troubling retailers. The BRC additionally stated will increase in “physical checks, paperwork, and other non-tariff barriers” will additional push up the price for retailers.”With coronavirus affecting the livelihoods of millions of people in the UK, many households can ill afford higher prices for their weekly food shop,” it stated.It claimed that the UK grocery sector is “one of the most competitive in the world”, working on tight margins. As a end result, it stated, any extra prices can be handed on to clients. “UK consumers have benefitted from great value, quality, and choice of food thanks to our ability to trade tariff free with the EU,” Mr Opie stated. “There is now the risk of a £3bn tax bill for the food we cannot source here in the UK.”A authorities spokeswoman stated: “Negotiations are ongoing and discussions will be continuing at the next formal round in Brussels next week.””The UK is a big importer of meals and different items, and avoiding tariffs must be useful to each side, notably given our shared dedication to excessive regulatory requirements.

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