Brexit and the Global Fashion Industry: Discussion Questions from FASH455

skynews-brexit-westminster_4764028

#1 To which extent should globalization be responsible for Brexit? Does Brexit imply globalization is in retreat? Why or why not?

#2 Why do you think the fashion industry is a stakeholder of “Brexit”? It is said that “some of the world’s poorest countries may end up the victims of Brexit.” Why is that?

#3 The article mentioned the possibility of London losing its reputation as a global fashion capital because of Brexit. What is your evaluation?

#4 Should the UK fashion industry vote for Brexit? Why or why not?

#5 Overall, from the case of Brexit, how do you understand that textile and apparel is a global sector?

[For FASH455: 1) Please mention the question number in your comments; 2) Please address at least TWO questions in your comments]

No-Deal Brexit: UK’s Import Tariff Rates for Apparel Products

The UK government on March 13, 2019 released the temporary rates of customs duty on imports if the country leaves the European Union with no deal. In the case of no-deal Brexit, these tariff rates will take effect on March 29, 2019 for up to 12 months.

According to the announced plan, around 87% of UK’s imports by value would be eligible for zero-tariff in the no-deal Brexit scenario.

Specifically for apparel products, 113 out of the total 148 tariff lines (8-digit HS code) in Chapter 61 (Knitted apparel) and 145 out of the total 194 tariff lines (8-digit HS code) in Chapter 62 (Woven apparel) will be duty-free. However, other apparel products will be subject to a Most-Favored-Nation (MFN) tariff rate ranging from 6.5% to 12%.

Meanwhile, the UK will offer preferential tariff duty rates for apparel exports from a few countries/programs, including Chile (zero tariff), EAS countries (zero tariff), Faroe Islands (zero tariff), GSP scheme (reduced tariff rate), Israel (zero tariff), Least Developed Countries (LDC) (zero tariff), Palestinian Authority (zero tariff), and Switzerland (zero tariff).

On the other hand, the EU Commission said it would apply the Most-Favored-Nation (MFN) tariff rates on UK’s products in the no-deal Brexit scenario rather than reciprocate.  

Appendix: UK’s MFN tariff rate for apparel products (HS Chapters 61-62) in the case of no-deal Brexit.