1/ A lot of confusion over the latest rumored UK thinking on US Chlorinated Chicken and dual tariffs.
A thread to explain the idea as simply as I can (but it's complicated so apologies in advance).
telegraph.co.uk/politics/2020/…
A thread to explain the idea as simply as I can (but it's complicated so apologies in advance).
telegraph.co.uk/politics/2020/…
2/ "So, what's the proposal?"
Currently, import of chlroine washed chicken is banned in the UK (and EU).
The idea would be to lift that ban and then in an FTA with the US, lower tariffs on ONLY the chicken which ISN'T chlorine washed.
Currently, import of chlroine washed chicken is banned in the UK (and EU).
The idea would be to lift that ban and then in an FTA with the US, lower tariffs on ONLY the chicken which ISN'T chlorine washed.
3/ "Why?"
Chlorine washing a chicken to clean it after slaughter enables production methods (how you raise and treat chickens) that are cheaper, but aren't allowed in the UK.
This provides farmers in the US who employ these methods a cost advantage over UK competitors.
Chlorine washing a chicken to clean it after slaughter enables production methods (how you raise and treat chickens) that are cheaper, but aren't allowed in the UK.
This provides farmers in the US who employ these methods a cost advantage over UK competitors.
4/ "So how does this help?"
The dual tariff idea theoretically works out what that cost advantage is, and eliminates it.
If chlorine washing gives you a 2 cent per killogram advantage, a tariff of 2 cents cancels it out, leveling the playing field (irony alert).
The dual tariff idea theoretically works out what that cost advantage is, and eliminates it.
If chlorine washing gives you a 2 cent per killogram advantage, a tariff of 2 cents cancels it out, leveling the playing field (irony alert).
5/ "But it could still come into the country?"
Yes, absolutely but on a theoretically equal footing.
What the tariff would do is cancel out the dividend that chlorine washing provides to those that employ it, without punishing those US producers that don't.
Yes, absolutely but on a theoretically equal footing.
What the tariff would do is cancel out the dividend that chlorine washing provides to those that employ it, without punishing those US producers that don't.
6/ "But if we think it enables cruelty, why should we allow it at all?"
It's a question of how you define the problem.
Is the problem that:
a) the practice happens at all, or
b) there's a financial incentive for it?
The UK can't make the US stop (a), but this addresses (b).
It's a question of how you define the problem.
Is the problem that:
a) the practice happens at all, or
b) there's a financial incentive for it?
The UK can't make the US stop (a), but this addresses (b).
7/ "I've heard it might be legally problematic."
Ordinarily, the WTO rules are pretty sceptical about judging a product on how it's made, rather than what it is at the end. Even the chlorine washed chicken ban is considered legally dicey.
BUT...
Ordinarily, the WTO rules are pretty sceptical about judging a product on how it's made, rather than what it is at the end. Even the chlorine washed chicken ban is considered legally dicey.
BUT...
8/ When two countries lower tariffs for one another in a Free Trade Agreement, the normal rules don't really apply.
You can set any kind of conditions you like, and as long as the other side is cool with them then it's all gravy.
You can set any kind of conditions you like, and as long as the other side is cool with them then it's all gravy.
9/ "Is the US likely to go for this?"
It's tough to see them loving it.
Fundementally, the US doesn't believe there's anything wrong with how it produces chicken, and their primary commercial interest is in securing tariff free access for washed birds. This ain't that.
It's tough to see them loving it.
Fundementally, the US doesn't believe there's anything wrong with how it produces chicken, and their primary commercial interest is in securing tariff free access for washed birds. This ain't that.
10/ "Is there a but?"
There is.
In addition to the immediate commercial considerations, there's an incentive for the US to have the UK, newly out of the EU, declare that chlorine washed chicken isn't inherently dangerous and ban worthy.
If this is all they can get...
/end
There is.
In addition to the immediate commercial considerations, there's an incentive for the US to have the UK, newly out of the EU, declare that chlorine washed chicken isn't inherently dangerous and ban worthy.
If this is all they can get...
/end
