LONDON (Reuters) – Food retailers and suppliers might lose 9.Three billion kilos because of new tariffs if Britain leaves the European Union and not using a deal, a examine commissioned by Barclays mentioned on Thursday.
FILE PHOTO – Fresh greens on sale in an Aldi retailer in London, Britain, February 15, 2018. REUTERS/Peter Summers
The prospect of a “no-deal” Brexit is in sharp focus after Prime Minister Theresa May mentioned talks with EU leaders have been at an deadlock final week.
The Barclays report mentioned foods and drinks coming into the UK from the EU can be topic to a brand new common tariff of 27 p.c, considerably greater than the Three-Four p.c levy that will be utilized to non-food merchandise.
“Some products would avoid tariffs, even in a no-deal scenario, but for most goods the effect of an increased tariff burden would be extremely damaging, and cheaper goods would be the hardest hit,” mentioned Ian Gilmartin, Head of Retail at Barclays Corporate Banking.
In 2017, UK imported 48 billion kilos value of foods and drinks, or roughly 40 p.c of the entire British market, financial modelling by Retail Economics for Barclays Corporate Banking confirmed.
But 71 p.c of those imports have been from the European Union and so weren’t topic to tariffs.
“A positive agreement on trade is essential if we are to protect UK exporters and avoid significant price rises for UK consumers,” Gilmartin mentioned.
Among the best levies going through the sector in a no-deal situation, frozen beef would have an obligation of practically 300 p.c, whereas orange juice would have a tariff of 180 p.c, the report mentioned.
Reporting by Alistair Smout; modifying by Stephen Addison