Not all countries follow the Convention on the Harmonization of Chemical Tariffs. For example, tariffs on by countries such as Brazil and India are much higher for many petrochemicals. If the country left the EU without a deal, it would automatically use the tariffs agreed under the WTO agreement on the harmonization of chemical tariffs agreed by the world`s major chemical markets, said Rene van Sloten, Executive Director of Cefics for Industrial Policy. Not only would the UK no longer benefit from duty-free trade with the EU-27, but it would not benefit from lower or no tariffs with countries in which the EU has negotiated separate bipartisan free trade agreements, including Singapore, Canada, Mexico, Korea and, in 2019, Japan. Follow this link to determine tariffs on EU exports. madb.europa.eu/madb/indexPubli.htm Under the “Most Favoured Nation” principle, which applies to all WTO members, countries must apply the same tariff to all trading partners. In this case, the UK will be free to negotiate new bilateral or regional free trade agreements, but it may take years to negotiate, so the UK is dependent on WTO tariffs. A coherent perspective across the global petrochemical supply chain. It provides data on import and export volumes, plant capacity, production, consumption and chemical trade flows. Request a free demo request Before being implemented, polymer rates often reached 16-17%, for example. “With the United States, this right would be the same as for the EU-27, but for Canada, Mexico, Korea and soon with Japan, the EU-27 has no tariffs, while the UK would face rights from the most favoured nation.” BARCELONA (ICIS) – British imports and petrochemical exports to the EU-27 and most other major trading partners will face tariffs of up to 6.5% from the World Trade Organization (WTO) in the event of a “non-deal” of Brexit, as an analysis by the European trade group Cefic suggests.
Follow this link to find out about the tariffs applied by all WTO members around the world www.wto.org/english/tratop_e/schedules_e/goods_schedules_table_e.htm Sign up for our ICIS newsletter to get the latest market developments, headline news and information on chemical price changes and market impact. Get free market updates “The quintessence is that with major trading partners such as the United States, Canada, Mexico, Japan, Saudi Arabia, Russia, Korea and the EU27, the maximum rate for Non-Deal Brexit would generally be 6.5%,” Van Sloten said. British Prime Minister Theresa May is facing a battle for the country`s parliament to pass her Brexit deal in the coming weeks. The WTO agreement on tariff harmonization was signed during the Uruguay Round of 1986-94, which negotiated the General Agreement on Tariffs and Trade (GATT). Stay abreast of market volatility and inform your business strategies in terms of price, data, news and analysis. However, they remain free to negotiate separate bilateral free trade agreements.