CCR Magazine

CSA Top Banner
You are here  :Home arrow News arrow Experts warn Brexit vote would exclude UK from vital new US 'free trade' deal
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Experts warn Brexit vote would exclude UK from vital new US 'free trade' deal PDF Print E-mail
Monday, 25 April 2016
A vote for Brexit puts the UK outside the imminent TTIP trade deal, warns ParcelHero. This means US and UK consumers will continue to pay £millions in duties set to be axed for US-EU trade  

Even as President Obama calls for the UK to vote to remain in the EU, the expert international courier ParcelHero has warned that the UK will fall outside the planned US-EU Transatlantic Trade and Investment Partnership (TTIP) agreement, by quitting the EU.

Writing in today’s Telegraph newspaper President Obama openly links the UK's membership of the EU with the TTIP deal: ‘… the UK has benefited from its membership in the EU… And the Transatlantic Trade and Investment Partnership with the EU will advance our values and our interests...’ Now ParcelHero has released a new report revealing that a ‘go it alone’ UK will certainly fall outside the upcoming TTIP, the aim of which is to remove customs duties on most EU-US trade.

Based on its extensive experience shipping between the US, the UK and Europe, ParcelHero’s Head of Consumer Research, David Jinks MILT, warns that post-Brexit, there would be increased Transatlantic transport costs as the UK becomes a less competitive market for US couriers; ‘customs clearance’ charges are imposed by global carriers, and many tariffs on US-UK sales remain; that will be scrapped between the USA and the rest of Europe.

Says David: ‘Currently many items sold between the two trading blocks are subject to duties: for example, US buyers pay 2.5% tariffs on EU-built cars and Europe pays 10% on US-made cars. These duties would be scrapped under the new TTIP agreement. But ParcelHero’s significant new report – Delivering Brexit: The True Cost of Leaving the EU – reveals that a go-it-alone UK would not be included in the new partnership and its exports to the US would continue to be subject to US tariffs.’

The UK-US market is a significant one. Last year Britain shipped $57.8bn of goods to the USA, including over $5.86bn cars, and imported $5.46bn of US products, including $133m of cars.

The report reveals that the US Government’s official Trade Representative, Michael Froman, stated its position on a Britain outside the EU in October 2015: ‘We have no FTA [Free Trade Agreement] with the UK so they would be subject to the same tariffs – and other trade-related measures – as China, or Brazil or India.’ The US Trade Representative is effectively warning that if Britain quits the EU it would not qualify for inclusion in any agreements.

Says David: ‘The EU has revealed it expects customs duties will be removed on most items shipped between the USA and EU. That will likely cover items from cars to chocolate bars. The bad news for US shoppers is that UK-sourced items, from Cadburys chocolates to Range Rovers, will continue to be subject to duties on arrival in the US if we do not qualify for the partnership, and the same goes for US products shipped to the UK.’

Many experts believe the TTIP will be signed before President Obama leaves office in January 2017; but not before the UK Brexit vote takes place on June 23rd this year.

Concludes David: ‘The USA is ParcelHero’s largest single country market, representing 25% of our total shipments; and a recent report from our partner delivery company FedEx on UK SMEs found the USA was their top global market beyond the EU. 35% of UK exporting SMEs ship to the US. It’s a vitally important relationship for both countries, and it is concerning that Brexit could have a significant damaging impact on this trade’.
 
Enghouse Side Banner

CSA side

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

CSA

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197