UK and US to temporarily suspend tariffs on agri goods
The UK and the US have reached an agreement to temporarily suspend duties on agricultural products imposed following a long-standing Airbus – Boeing dispute. This was reported on June 24 by the FarmingUK edition.
Higher tariff rates of 25% of the value of the goods have been introduced on a range of goods since October 2019 due to a dispute between Airbus and Boeing. Both the US and the EU have argued that aircraft manufacturers on both sides are being unfairly subsidized.
Under the new agreement, both sides will remove tariffs on £ 8.2bn on goods, including wine, cheese, clothing and tractors, over five years. In the UK agricultural sector, the main products that made the most impact were pork and dairy products.
When the tariffs were imposed, they affected pork valued at more than £ 32 million, with the focus on premium pork. Sales of the product dropped 43% to £ 19 million last year, according to AHDB.
The cheese trade sank more than £ 54 million, and the US market was key for organic exports, which fell 20% to £ 44 million in 2020.