Gopee-Scoon cautions on UK tariff as trade bill passes Senate

TRADE and Industry Minister Paula Gopee-Scoon cautioned that TT's exports to the United Kingdom (UK) could be subject to its new UK Global Tariff (UKGT) if the Cariforum States (Caricom and he Dominican Republic) and the United Kingdom of Great Britain and Northern Ireland EPA (economic partnership agreement) Bill, 2021 does not become domestic law.

She made this point as she opened debate on the bill in the Senate on Wednesday.

The bill was later passed by the Senate. The House of Representatives passed the bill on March 12.

From January 1, the UKGT replaced the EU’s Common External Tariff (CET), which was in place before the UK left the EU last January. The British goverment's Gov.UK website said the UKGT is designed to the needs of the UK economy, backing British business to compete on the world stage and make it easier for British businesses to import goods from overseas.

Gopee-Scoon told senators, "That is very much like what we use in the region, in Caricom, our CET.

She advised, "If we do not move swiftly to bring his bill to law, TT's products like its cereals and beverages and rums and so on, will all face duties under the UKGT."

After making this caution, Gopee-Scoon said, "The benefits far outweigh the challenges."

Gopee-Scoon explained that both the Cariforum-EU and Cariform-UK EPAs give TT "a predictable and permanent arrangement for both the export of primary and manufactured goods and services."

TT signed on to the Cariforum-EU agreement in 2008. She added that both agreement allow the import of much needed goods like pharmaceuticals.

"TT, as part of Cariforum, is now guaranteed duty-free, quota-free access for all of its exports into the UK with the exception of things like arms and ammunition."

Gopee-Scoon added that UK products entering Cariforum states, including TT, will be subject to "either immediate duty free access or a phased reduction of duties over time."

Under both EPAs, Gopee-Scoon said, sensitive food sectors in Cariforum (such as frozen animal meats, fish fillets, shrimp, lobster, milk and creams, butter, cheese, honey, cabbage lettuce, peas, cassava, grapefruit, watermelon, paw paw and rice) are protected.

Gopee-Scoon said TT exports to the UK increased from 2015 to 2017. While exports to the UK declined in 2018 and 2019, Gopee-Scoon said there were signs of recovery last year. While methanol was TT's highest export to the UK from 2015 to 2019, Gopee-Scoon said it was replaced last year by LNG. She added that local non-energy products such as aromatic bitters, paints, curry, beer, shandy, rum, chocolates and cereals, do very well in the UK.

The legislation, Gopee-Scoon continued, also benefits local professionals such as veterinarians, doctors, urban planners, dentists, chefs and engineers who want to work in the UK for periods not exceeding six months.

She also said whiskey, bank and currency notes, books, machinery, appliances, cheese and cars among some of the UK's main imports into TT.