Saturday, September 17, 2005

Brit Free Trade (Not)

The Brits have quietly abandoned Free Trade. That's bad news for the world's economy.

Here's how the Brits taxed an item we just imported from the US:

Value of shipment: $100

Value Added Tax: £12.66 ($22.79 at current rates)

Customs clearance Fee: £13.50 ($24.30)
(This is charged by the Brit delivery service Parcelforce, so may be a scam by them and/or a Brit customs)

So on a $100 import from a most favored trading partner, Brits pay about 47% tax and other charges. This high level is new - possibly a Blair stealth tax.

Lousy economics and lousy politics.