UK Considers Reducing Food Tariffs on Rice and Oranges Amid Soaring Prices

Published 27 Apr.2022 09:53(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The Financial Times (FT) reported on the 26th (local time) that the UK is considering lowering tariffs on food products such as rice and oranges, which are not produced domestically, amid a rapid rise in inflation.

UK Prime Minister Boris Johnson convened a cabinet meeting that day and expressed support for the tariff reduction plan, saying, "Please present innovative ways to ease the pressure on household finances."

The related proposal was put forward by Conservative Party MP Jacob Rees-Mogg, a Brexit hardliner and known close aide to Prime Minister Johnson. Minister Rees-Mogg emphasized, "One of the great benefits the UK can gain from leaving the European Union (EU) is the freedom to pursue its own trade policy."

On the other hand, Anne-Marie Trevelyan, Secretary of State for International Trade, opposed the plan, arguing that if the UK proactively lowers tariffs, it will lose bargaining power in trade negotiations with third countries.

Chancellor of the Exchequer Rishi Sunak explained in this regard, "We are open to listening to ideas that reduce household food expenses, even if it causes losses amounting to hundreds of millions of pounds."

According to market research firm Kantar, the average annual food expenditure per UK household increased by ?271 (approximately 430,000 KRW) compared to the previous year, marking the largest increase since December 2011. Additionally, according to an ONS survey, 9 out of 10 UK adults responded that their cost of living increased between November 16 and 27, a significant rise compared to the 62% response rate in November. The causes of the cost increase were cited as rising food and energy prices. The UK food price inflation rate recorded 5.9% last year.