At a time when the UK is facing an enormous global Coronavirus recession and record levels of unemployment, everyone is worried about their future economic position.
The new UK Global Tariffs, effective from 1st January, will replace the system we currently have via the EU and the Single Market. The new set of tariffs that importers will have to pay will drastically change the way food reaches our supermarket shelves.
The new UK Global Tariffs will contribute to a significant increase in the cost of essential food items and consumers will pay more for staple products.
|
Product |
UK Global tariff |
Increase per can |
Current RSP of own-label item @ an indicative major UK retailer |
% increase |
Alternative sources? |
|
Sweetcorn |
4% + £7.80/100kg |
3.4p |
50p |
6.8% |
Currently no country with an FTA with UK. |
|
Tomatoes |
14% |
4p |
35p |
11.4% |
Currently no country with an FTA with UK. |
|
Baked Beans |
16% |
4.2p |
30p |
7.1% |
UK production is available but would not meet UK demand and would create a monopoly and reduce competition |
|
Canned Peaches 400g |
18% |
7p |
80p |
8.75% |
South Africa is only exporting country with an FTA with UK. Cannot meet UK demand. Any potential FTA with USA would not provide solution as freight costs would offset duty gain. |
|
Dried Pasta |
6% + |
12p |
53p |
22.6% |
UK production is possible but is very small and could not volume requirements. |
|
Evaporated Milk 400g |
£36/100kg |
18p |
65p |
27.6% |
No evaporated milk capacity exists in UK. |
Source: UK Government guidance 'UK tariffs from 1 January 2021'