The United Kingdom has launched a new Developing Countries Trading Scheme (DCTS), aimed at extending tariff cuts to hundreds of more products exported from developing countries, going further than the European Union (EU’s) Generalised Scheme of Preferences.
The DCTS covers 65 countries across Africa, Asia, Oceania and the Americas including some of the poorest countries in the world.
Acting British High Commissioner to Nigeria, Gill Atkinson, disclosed that “Nigeria will automatically benefit from enhanced preferences under the DCTS. This means 99% of total goods exported from Nigeria are eligible for duty-free access to the UK, saving £500,000 of tariffs.
“As an example, cocoa butter exporters will save £180,000. It’s great to see that the new DCTS will also simplify seasonal tariffs, meaning additional access for Nigeria’s exports to the UK.”
The DCTS removes some seasonal tariffs, meaning more options for British supermarkets and shops all year round.
For example, cucumbers, which can’t be grown in the UK in the winter, will now be tariff-free during this period for the majority of countries in the scheme.
This initiative is part of a wider push by the UK to drive a free trade, pro-growth agenda across the globe, using trade to drive prosperity and help eradicate poverty.
This initiative is part of a wider push by the UK to drive a free trade, pro-growth agenda across the globe, using trade to drive prosperity and help eradicate poverty.
Key highlights
- The new trading scheme will cut tariffs on hundreds of everyday products
- Developing Countries Trading Scheme (DCTS) will help UK businesses access hundreds of products from Nigeria and around the globe at lower prices, reducing costs for UK consumers
- Will boost trade with 65 developing countries, support jobs and growth at home and abroad, and reinforce our economic security
Also, thousands of products which developing countries can already export to the UK duty-free, means 99% of goods imported from Africa, for example, will enter the UK duty free.
Furthermore, a wide variety of products, including clothes, shoes and food that are not widely produced in the UK as well as olive oil and tomatoes – will benefit from lower or zero tariffs.
DCTS also ensures that British businesses can benefit from more than £750 million per annum of reduced import costs, leading to more choice and lower costs for UK consumers to help with the cost of living.
Commenting on the scheme, Secretary of State for International Trade, Anne-Marie Trevelyan, said: “As an independent trading nation, we are taking back control of our trade policy and making decisions that back UK businesses, help with the cost of living, and support the economies of developing countries around the world.
“UK businesses can look forward to less red-tape and lower costs, incentivising firms to import goods from developing countries.”
