The nuts and bolts of the TTIP agreement will focus on eradicating tariffs such as import duties and discriminatory taxes on goods traded between the EU and US – bringing prices down for both businesses and consumers here in the UK.
Tariffs do not just hurt companies and their employees; they also penalise the consumer.
Lower tariffs, lower prices and more choice here at home
Every time you buy something made in the US – in the UK high street or online – it’s likely more expensive than it needs to be because of tariffs. These are – on average – currently set at 5.2% of a product’s imported value.
For some goods, the tariffs are higher still. Jeans have a 12% tariff coming from the US – that could add £5 to £10 for a single pair every time you buy them. For cars, there’s a 10% EU import duty – that makes US cars more expensive in the UK and means it is not economically viable for some models to be sold here.
TTIP will eliminate these tariffs – giving a major cost saving to business, increasing competition in the market, and putting downward pressure on prices that consumers pay in the UK.
Less tariffs mean more products at cheaper prices in the UK and the US #TTIP
Reducing tariffs on UK exports will support British business to break into the American market
Tariffs also harm UK business prospects in the US. American import duties of 20-30% apply for many British clothing exports, holding back some of our top brands from gaining a foothold in the US. British manufacturers of ceramic tableware are confronted with import duties of 28% and UK exports of food products like chocolate, processed meats and cheese are particularly hard hit by tariffs. TTIP will bring tariffs down, increasing sales for UK exporters as they become more competitive in the US market and making goods cheaper for US consumers.
Any British manufacturers that use imported US components in their final product will benefit too. Money saved from tariff elimination via TTIP can instead fund investment or lower prices for consumers.