The UK's landmark scheme to boost trade with developing countries starts today.
- UK’s landmark Developing Countries Trading Scheme enters into force on 19 June.
- Scheme cuts tariffs on products entering the UK from 65 developing countries.
- It will help reduce import costs by over £770m per year, benefiting UK consumers and businesses.
The UK will from the 19 June radically simplify trading rules and cut tariffs on products from developing countries, saving UK businesses and consumers millions of pounds a year.
The UK’s new post-Brexit Developing Countries Trading Scheme (DCTS) – entering into force today – covers 65 countries that are home to over 3.3 billion people, and over half are in Africa. It 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 scheme saves 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 such as clothes, food and children’s toys - 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% 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.
