Britain will abolish tariffs on many American products previously introduced by the European Union from 1 January. To pave the way for a trade agreement with the United States after Brexit.
“We want to ease the dispute and agree on a solution so that we can deepen our trade relations with the United States and draw a thick line,” said British International Trade Secretary Liz Truss.
In November, the European Union introduced up to 25 percent tariffs on US products worth four billion dollars in retaliation for illegal subsidies. Washington granted to the American aircraft manufacturer Boeing, a competitor of European Airbus. The transitional period expires on 1 January, when Britain still had to abide by EU rules after the referendum in which it decided to leave the European Union.
Customs duties on the European Union have been approved by the World Trade Organization (WTO). The United States has previously imposed tariffs on European products due to unauthorized incentives received by Airbus. These duties affected, among other things, Scotch whiskey, whose exports to the United States then fell by 30 percent.
For Britain, concluding a trade agreement with the United States is crucial. Otherwise, their trade would be subject to WTO rules, some of which set very high tariffs.
While the outgoing US President Donald Trump administration was in favor of the early conclusion of the agreement when Britain leaves the bloc, the newly elected President Joe Biden is more reluctant, writes the BBC website. London said it reserves the right to renew tariffs if no progress is made in negotiations with Washington.
Britain has also not yet abolished tariffs imposed by the EU in response to Washington’s tariffs on imports of steel and aluminum. The EU’s tariffs apply to American food, such as ketchup, nuts, rum, game consoles, tractors, and aircraft.