Brown calls for abolition of tariffs
Britain’s Chancellor of the Exchequer, Gordon Brown, has called for a reduction in industrial tariffs between the EU and US to zero. He made the comments at a meeting of British American Business Incorporated (formerly the Anglo-US Chamber of Commerce) on Thursday, 26 July. The Chancellor is thought to be less in favour of Britain’s entry to the euro than Prime Minister Tony Blair, but he stressed the need for Britain to maintain links with Europe and America.
The removal of tariffs would be beneficial for both American and European firms. Some products still carry quite high duties. For example, America slaps 15 % tariffs on textiles, footwear and leather. Wellington boots attract a 35 % tariff and "safety footwear" such as Dr Marten’s metal toe-cap boots have 37.5 % tariffs. For its part, the European Union continues to place tariffs on certain items from the US.
Brown wants the EU and the US to agree to tariff reductions before the next round of negotiations of the World Trade Organisation, thereby creating a critical mass that other countries would be likely to follow. The move follows the recent successful conclusion of the "information technology agreement" which eliminated all tariffs on most high-tech goods. That also came about because of a joint commitment by the US and EU to zero tariffs.
