Government has announced immediate action by the Trade Remedies Authority (TRA), the body responsible for defending the UK against certain unfair international trade practices.
The Chancellor also announced her intention to review the customs treatment of Low Value Imports, which allows goods valued at £135 or less to be imported without paying customs duty.
Several British retailers, including Sainsburys, have called for an amendment to the treatment, arguing that it disadvantages them by allowing international companies to undercut them.
Speaking in Washington D.C. at the annual IMF Springs meetings, Reeves was clear that an open global economy is crucial for UK growth, the number one priority of the Government’s Plan for Change.
She said that free and open trade is good for the UK, but fairness needs to be injected into the global economic system. Gains from global economic growth have not been equally shared both at home and abroad, and more needs to be done to tackle the rise in non-market practices that harm working people’s incomes.
Chancellor Rachel Reeves stated: “The world has changed, and we are in a new era of global trade.
“We must stand up for free and open trade – crucial to deliver our Plan for Change to make everyone better off. We must help businesses keep their access to trade around the world.
“This Government is meeting the moment to protect fair and open trade. Following recent announcements reducing tariffs and support for the zero-emissions vehicles industry, today’s package will help businesses compete fairly with international exporters, supporting a world economy that provides stability and fairness for working people and businesses alike.”
The support comes in addition to recent action taken by the Government aimed at supporting industry and businesses navigate tough global economic headwinds.
As part of the Spring Statement, tariffs were suspended on 89 foreign products – including pasta, fruit juices and spices – over the next two years.
Government “won’t stand idly by”
Business and Trade Secretary Jonathan Reynolds commented: “This Government won’t stand idly by while cheap imports flood our markets and harm British industries. That is why I met with the TRA recently to agree urgent steps to tackle these issues in real time to deliver quicker protections for firms.
“This is about standing up for our national interest, and as part of our Plan for Change, creating a level playing field where UK businesses can thrive and grow.”
George Weston, chief executive of Associated British Foods, said: “We welcome the Chancellor’s plan to review the customs treatment of Low Value Imports. The abolition of the favourable tax treatment of low value imports would be a significant step forwards in the Government’s support for British businesses.
“We have long advocated for the closure of this tax loophole which undermines many UK companies that make a substantial contribution to the British economy, to the British high street and to the British Government’s own revenues.”
Helen Dickinson, chief executive of the British Retail Consortium (BRC), commented: “The announcement of the review into the de minimis rules is most welcome and shows that the Government has listened to the concerns and representations of retailers and the BRC and that it is prepared to take swift action to protect consumers from goods being dumped in the UK, many of which fail to meet UK environmental and ethical standards, as a result of global trade turmoil.
“A review of this policy, which was designed to reduce the burden on low-volume, low-value imports, was already needed. With retailers seeing a rise in the number of potentially non-compliant products entering the UK market, it’s even more critical now.”
