Canary fruit and vegetable exports to the United Kingdom (an important market for products from the archipelago) could be affected by the new tariffs that the country will start applying after its definitive exit from the European Union.
UK Department of International Commerce (DIT) chief secretary Liz Truss said that for the first time in 50 years, "we'll be able to establish our own tariff regime tailored to the UK economy." The DIT reported that the system would ensure that, after January 2021, 60% of trade with the United Kingdom would be duty-free under WTO terms or in the framework of existing preferential access schemes with developing countries.
The British department claims that the new regime will remove some of the complexities of the EU system, while also lowering tariffs and eliminating all tariffs below 2%.
However, according to the Canary Confederation of Small and Medium Enterprises (Cecapyme), products such as bananas, cucumbers or tomatoes will suffer a tariff increase. According to the entity's estimates, cucumbers from the Canary Islands would pay a tariff of up to 10%, and that of tomatoes would range between 8% and 10%.
For its part, the Canary Islands Government has recently approved a new list with 156 products subject to the Insular Excise Duty on the Entry of Goods (AIEM); a tariff included in the Economic and Fiscal Regime (REF) aimed to protect local productions from imports. In this regard, it is worth noting that the Canary Islands also import potatoes from the United Kingdom.
