Think tank urges UK commit to free market

Import tariffs are a form of “self-harm” and should be scrapped after Brexit to lower prices for consumers, according to a free market think tank.

Walking away from the European Union without a deal would not be a disaster for the UK because the country could still enjoy most trade benefits, the Institute for Economic Affairs (IEA) said.

Britain should unilaterally offer free trade as well as striking agreements with major partners, it urged.

The move would help the poorest by cutting the cost of goods being imported into the UK but would leave some businesses exposed to being undercut by cheaper imports.

“It is in the interests of UK consumers and UK importers generally to buy as cheaply as possible, which implies that tariffs are a form of self-harm,” the IEA report said.

“The UK should therefore commit to a policy of unilateral free trade with the rest of the world, thereby eliminating all barriers to imports, and it should do so regardless of whether other countries impose tariffs on their imports from the UK or not.”