After a series of conversations, the UK eventually agreed a new trade deal with the US which will see businesses operating with the aerospace and automotive industry avoid some of the import taxes announced by the US.
The deal doesn’t just impact the UK’s aerospace and automotive industry, it will also impact the UK’s agriculture sector as the US counterparts will now have greater access to this market.
If your business is operating within these sectors, it is important you understand how this trade deal could impact your business and the potential avenues the deal could open.
The impact on automotive and aerospace industries
There is relief for the automotive industry as the trade deal will see tariffs fall to 10 per cent on the first 100,000 vehicles that are exported to the US.
In addition to this, there is also perks in place for the parts of these cars that are exported. The news is positive for automotive businesses who were concerned about the tariffs affecting trade, given the other countries face a 27.5 per cent rate for car exports.
There is also good news for businesses within the aerospace market as they will not pay any tariffs as part of the deal agreed between the two countries. This is likely to help both industries save millions and generate new business.
The impact on the UK’s agricultural sector
The new UK-US trade deal didn’t just focus on automotive and aerospace sectors, the doors have opened for farming businesses in both countries.
The trade in place enables both UK and US farmers to access each other markets. UK beef farmers have access to the US market for the very first time, meaning they can agree deals with their US counterparts and vice-versa.
Following agreements between the two countries, UK farmers have a tariff free quota of 13,000 metric tonnes. For US farmers, they have access to a brand-new market, with British tariffs on beef to fall for a 13,000-tonne quota.
The deal seems like a win-win for both industries. However, there are concerns around cattle welfare and if the restrictions around injecting hormones will be monitored and enforced.
Future additions to trade deal
Other industries are likely to be part of future discussions between the two countries to enhance the current trade deal in place.
There is a commitment from both countries to work together on things such as keeping investments and tech vendors secure as well as investments in security.
In addition to this, they are also keen to tackle duty tax evasion so if you are importing and exporting, its important you are fulfilling your legal obligations.
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