The UK is to launch what it describes as one of the world’s most generous trading schemes with developing countries.
The Government has claimed that British businesses can benefit from more than £750 million per year of reduced import costs, leading to more choice and lower costs for UK consumers.
What does the scheme entail?
It comes as the Department for International Trade (DIT) has launched the Developing Countries Trading Scheme (DCTS), to cut tariffs on hundreds of products imported to the UK from developing countries.
The DCTS will come into effect in early 2023. In line with the Government’s new International Development Strategy, the scheme contributes to developing countries’ integration into the global economy.
What are the improvements to the EU model?
The new scheme has a wider scope than the EU’s Generalised Scheme of Preferences, which the UK had previously rolled over into its statute book after leaving the bloc.
A wide variety of products that aren’t widely produced in the UK will benefit from lower or zero tariffs – ranging from clothes and shoes to foods including olive oil and tomatoes.
International Trade Secretary Anne-Marie Trevelyan said UK businesses will benefit from fewer trade barriers and lower costs, incentivising them to import more goods from developing countries.
Which countries are eligible?
The DCTS covers 65 countries across Africa, Asia, Oceania and the Americas and includes some of the poorest countries in the world, according to the DIT.
Marco Forgione, Director General of the Institute of Export & International Trade (IOE&IT), welcomed the move, saying: “International trade has a key role to play in lifting people out of poverty, transforming communities and increasing sustainability. The UK’s new tariffs regime is an important step in achieving these goals.”
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