By Elishya Perera
LONDON (CU)_In a victory for post-Brexit Britain, the United States has agreed to suspend punitive tariffs on several goods imported from the UK, including Scotch whisky, clotted cream and cashmere clothes, after a truce was agreed over illegal state aid for aircraft makers.
“From Scotch Whisky distillers to Stilton-makers, businesses across the UK will benefit from the US decision today to suspend tariffs in this dispute,” British Prime Minister Boris Johnson said.
“It shows what the UK can do as an independent trading nation, striking deals that back our businesses and support free and fair trade.”
The tariffs, which were imposed as a retaliatory measure owing to the Airbus dispute for four months, will be temporarily suspended by Washington, in an effort to reach a negotiated solution to the 16- year long dispute.
Prior to the tariffs, the United States imported around £550 million of goods from the UK, including single malt Irish and Scotch whiskies worth around £340 million, and therefore, the suspension of tariffs is expected to benefit Scotch whisky producers, and several other businesses, such as cashmere producers, pig farmers and stilton makers.
In 2018, the year before the tariffs were imposed, UK exported around £11 million worth of the knitted and crocheted clothing, £38 million of the pig meat and around £45 million of the cheeses, which were all targeted by the tariffs.
According to the Department of International Trade in London, the measures will come into force on March 8, and backdated to March 4.
The move follows London’s decision to suspend Boeing tariffs against the US from January, which has paved the way for both countries to work on ending the dispute and focus on deepening trade relations, the Department noted.
International Trade Secretary Liz Truss welcomed the decision, saying she is delighted that the United States, under the new administration, has embraced London’s move to seek “a fair settlement”.
“This is Global Britain in action: securing new opportunities as a newly nimble nation,” she said. “The benefits will be felt across our nation, especially in Scotland, where Scotch whisky distillers will be able to sell at lower prices in the United States, their most valuable market.”
Meanwhile, the Department for International Trade also announced that London and Washington are currently working towards an ambitious trade deal, which is expected to eliminate almost £500 million in tariffs on UK exports to the US.
