Level Playing Field For UK Trade Is Vital

The government 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.  

Some of Britain’s best-known retailers such as Next and Sainsburys, have called to amend 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 of the Exchequer, Rachel Reeves, said:

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.

Today’s (23 April) support comes in addition to recent action taken by the government recently to support industry and businesses navigate tough global economic headwinds.   

This includes action to protect British steelmaking, as the UK vows to take a strategic approach to the forthcoming industrial strategy so the economy that can make, sell, and buy more in Britain.   

As part of the Spring Statement tariffs were suspended on 89 foreign products – ranging from pasta, fruit juices and spices to plastics and gardening supplies – over the next two years.  

The Prime Minister announced earlier this month that the Zero Emission Vehicle Mandate is changing to make it easier for industry to upgrade to make electric vehicles while delivering the manifesto commitment to stop sales of new petrol and diesel cars by 2030.

Business and Trade Secretary Jonathan Reynolds said:

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.

Responding to the Government’s proposals for the Trade Remedies Authority and changes to customs charges for low value imports, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:   

“There are still many twists and turns to go in the trade war between the US and China. It remains to be seen whether cheap Chinese goods will flood the UK as a result. 

“But the risk is present. It is sensible for the Trade Remedies Authority (TRA) to have all the necessary tools and resources to take action to prevent the UK being swamped with unfairly cheap products. 

“If domestic production suffers from a surge in imports or dumping of goods it is right that business has clearer access to make their case to the TRA. It must have the resources it needs to enforce a level playing field.  

“Proposals on charging levies for cheaper deliveries of online orders of goods from overseas (de minimis thresholds) are also under various stages of reform by the US and the EU.  

“We will be speaking to Chambers about the implications of this and look forward to engaging in the review. 

“But with economic growth consistently low and trade uncertainty high, we urge government to consider other bold measures. 

“Simplifying rules and processes to make trade easier is vital to weathering the current storm. It should use the EU reset negotiations to remove safety and security declarations for goods and pursue a global pro-growth agenda on trade digitalisation.” 

Read more on the Treasury announcements here.