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CunningPlan

Eu Import / Export Tariffs

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Thought I would start a new topic as this is quite specific.

I have been thinking and trying to research the quagmire of information surrounding tariffs.

As far as I can see, import tariffs can be very high (over 100%) but as an example average 18% on agricultural products and about 4.5% on other things. Source

I understand the collecting nation keeps a portion of this for administration and remits the balance to the EU.

Therefore, with the value of non EU imports for March 2016 standing at £20bn, the UK population at large will have paid almost £1bn of additional tax on imports due to our EU membership.

Assuming all else remains the same, on brexit we would maintain these tariffs in the short term so that is an extra £1bn the UK Gov't can trouser for itself.

I assume that the agreements are pretty much quid pro quo and therefore the countries that we charge a tariff to also charge us. Therefore UK exporters are being hit with high export duties to these countries.

It seems perverse to me that the burden of our exporters is borne by the UK and the benefit of the revenue on our imports goes to the EU.

Have I got this totally wrong?

edit for stupidity.

Edited by CunningPlan

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It seems perverse to me that the burden of our exporters is borne by the UK and the benefit of the revenue on our imports goes to the UK.

Have I got this totally wrong? Is that what you meant ^^^ or should that be EU ?

Edited by long time lurking

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the EU and UK are both WTO signatories (well the EU signed on our behalf but on exiting the EU we'd sign up again as we used to be).

In this case both countries would be subject to the MFN (Most Favoured Nations) tariff, which is set at a measly 1% for most goods, with the exception of a few agricultural goods and cars. 1% is less than the weekly currency fluctuations - not even worth worrying about

As for cars - anyone thinking Germany industry will allow Merkel to increase the cost of it's exports by 10% to it's biggest external market has never been in business. Likewise Citroen, Peugeot, Renault etc

We have almost nothing to lose, and a hell of a lot to gain.

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the EU and UK are both WTO signatories (well the EU signed on our behalf but on exiting the EU we'd sign up again as we used to be).

In this case both countries would be subject to the MFN (Most Favoured Nations) tariff, which is set at a measly 1% for most goods, with the exception of a few agricultural goods and cars. 1% is less than the weekly currency fluctuations - not even worth worrying about

As for cars - anyone thinking Germany industry will allow Merkel to increase the cost of it's exports by 10% to it's biggest external market has never been in business. Likewise Citroen, Peugeot, Renault etc

We have almost nothing to lose, and a hell of a lot to gain.

That's what I originally thought.

But just taking a Chilean Merlot for example - the tariff seems to be 32p per litre. That's the best part of £50 per year on my wine alone going to the EU!

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That's what I originally thought.

But just taking a Chilean Merlot for example - the tariff seems to be 32p per litre. That's the best part of £50 per year on my wine alone going to the EU!

Link

but that's if the French choose to levy it on their exports... Something which (I suspect) they would not be willing to do

Besides, from have Iceland (in the far north west of Europe) all the way to the Russian border - there are no tariffs and full access to the single market. It's simply impossible that they'd make an exception for us as country that has a trade imbalance with them.

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but that's if the French choose to levy it on their exports... Something which (I suspect) they would not be willing to do

Besides, from have Iceland (in the far north west of Europe) all the way to the Russian border - there are no tariffs and full access to the single market. It's simply impossible that they'd make an exception for us as country that has a trade imbalance with them.

Told you I was confused. So despite the EU not having a trading agreement with Chile, and despite them publishing an import tariff for Chiliean wine, it is not actually charged?

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Ah sorry! skipped the word "Chilean" there - just saw "wine" and assumed you were talking about our cheese-loving neighbours.

tariffs on Chilean goods would depend on their WTO status - or whatever trade agreement we could make with them (now that we'd be allowed to make our own tree agreements once outside the EU). Though I suspect they'd be happy to have a free trade agreement with 60m potential customers.

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The EU`s so called strength via its size when negotiating trade deals is nothing but a lie ,it has been forcing us and all the other 27 members to pay more for goods sourced outside of the EU...why as the OP pointed out the EU government benefits from it financially

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Ah sorry! skipped the word "Chilean" there - just saw "wine" and assumed you were talking about our cheese-loving neighbours.

tariffs on Chilean goods would depend on their WTO status - or whatever trade agreement we could make with them (now that we'd be allowed to make our own tree agreements once outside the EU). Though I suspect they'd be happy to have a free trade agreement with 60m potential customers.

That's what I thought - so I am giving an extra 32p to Europe for every bottle I drink. As per the OP, multiply this by every non EU import we consume and the UK population is giving one hell of a lot more to EU coffers than even the brexit campaig are telling us.

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That's what I thought - so I am giving an extra 32p to Europe for every bottle I drink. As per the OP, multiply this by every non EU import we consume and the UK population is giving one hell of a lot more to EU coffers than even the brexit campaig are telling us.

very true - it's not just the £55m a day (gross) that we pay.

And don't forget the costs of regulation too.

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