UK simplifies trade rules, cuts tariffs on developing countries

The DCTS removes or reduces tariffs and simplifies trading rules so that more products qualify for the scheme, making it more generous than the EU scheme the UK was previously a member of. It will benefit developing countries looking to diversify and increase exports, driving their prosperity and reducing their need for aid, the UK’s department for business and trade said in a press release.   

The scheme will save UK businesses over £770 million per year by removing or cutting tariffs on over £9 billion of imports—increasing choice for UK consumers and potentially reducing prices on a wide variety of items including clothes as well as creating opportunities for UK businesses to trade internationally and grow the UK economy. Over time, were developing countries to increase trade with the UK under the scheme, businesses could save millions more on import costs.

Minister for international trade Nigel Huddleston launched the scheme while on a visit to Ethiopia’s largest industrial business park, Bole Lemi. Ethiopia, which already has a trading relationship with the UK worth £838 million, pays zero tariffs on 100 per cent of goods exported to the UK. Under the new scheme, Ethiopia and 46 other countries will be able to produce goods using components from many more countries, growing their opportunities to trade with the UK.

“The UK’s new trading scheme for 65 developing countries, DCTS, shows how we can use trade to deliver development. It will benefit traders around the world, including small and women-owned businesses which we are supporting through the UK Trade Partnership programme,” said foreign, commonwealth, and development office minister for Africa, Andrew Mitchell.

While in Addis Ababa, Ethiopia’s capital city and home to many international corporations, minister Huddleston will meet with UK and Ethiopian companies to discuss how they will benefit from the DCTS and new ways they can work with local businesses and other governments to grow trade.

The scheme benefits businesses all over the world and British companies that trade with these countries in everyday products.

“The revised rules of origin under the DCTS will be hugely beneficial for Least Developed Countries and companies who are sourcing products from them. Under the previous regime, many articles were precluded from benefitting from 0 per cent duties due to the complexity of the rules of origin,” said Ben Price, head of international logistics and trade compliance at Halfords.

Fibre2Fashion News Desk (NB)