The UK’s Developing Countries Trading Scheme [DCTS] will come into effect in January and will see import tariffs cut on hundreds of products originating from developing countries.
The DCTS will replace the EU Generalised Scheme of Preferences, which the UK signed up to as a member of the European Union.
Goods including clothes, shoes, and foods such as olive oil and tomatoes that are not widely produced domestically will be subject to lower or even zero tariffs.
As well as removing some seasonal tariffs on food products to help bolster the supplies of UK supermarkets over the whole year, the scheme will also simplify complexities around rules of origin, which stipulate that certain proportions of particular products must be made in the country of origin.
65 developing countries are included in the scheme, spanning Africa, Asia, Oceania and the Americas.
Developing nations are already able to export some thousands of products without tariffs, while the new scheme from January will build on this, making it cheaper for 99 per cent of African imports to enter the UK.
The Department for International Trade [DIT] said that the move would help drive prosperity and “eradicate poverty” in some of the poorest countries in the world, reducing dependency on foreign aid, promoting free-trade and stimulating economic growth.
International Trade secretary Anne-Marie Trevelyan commented: “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.”
The UK reserves the right to suspend countries from the scheme if they do not uphold their human rights or working rights obligations or fail to adhere to climate goals.
Photo by Kyle Glenn on Unsplash
