Today, the UK is utilising its post-Brexit authority to launch one of the most generous trade initiatives ever with underdeveloped nations.
The new Poor Nations Trading Scheme (DCTS), which extends tariff reduction to hundreds of additional items produced from developing countries and goes beyond the EU’s Generalized Scheme of Preferences, was introduced by International Trade Secretary Anne-Marie Trevelyan.
This is in addition to the hundreds of items that developing nations may currently export duty-free to the UK [and ensures that, for example, 99% of commodities bought from Africa enter the UK duty-free].
The programme implies that a broad range of items, from clothing and shoes to commodities like olive oil and tomatoes that aren’t extensively produced in the UK, will benefit from reduced or free tariffs.
The Developing Countries Trading Scheme makes sure that British companies can take advantage of annual import cost savings of more than £750 million, which gives UK customers more options and cheaper prices to assist with the cost of living.
Anne-Marie Trevelyan, secretary of state for international trade, 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.
The DCTS includes some of the world’s poorest nations in its coverage of 65 nations in Africa, Asia, Oceania, and the Americas.
It eliminates certain seasonal levies, giving British supermarkets and stores additional choices all year round.
Cucumbers, for instance, which cannot be cultivated in the UK throughout the winter, will now be duty-free during this time for the bulk of the participating nations.
The plan also clarifies complicated trade regulations like the rules of origin, which specify how much of a product must be produced in the nation of origin.
This facilitates the export of companies like Bangladesh’s family-owned textile company DBL Group, encouraging emerging nations to participate more actively in international commerce.
DBL Group’s managing director, Mohammed Jabbar, said:
These new rules will be a game changer for us. They mean we will be able to source our cotton from many more countries than we could before, which will make the business more competitive and our supply chains a lot more resilient.
This study is a part of a larger UK effort to promote free trade and pro-growth policies throughout the world, utilising trade to spur wealth and fight poverty.
This campaign includes a brand-new programme called Platinum Partnerships, which aims to increase commerce between the UK and a few Commonwealth nations with lower and moderate incomes while decreasing reliance on assistance.
The collaborations will improve two-way green trade and investment, assisting nations with climate change adaption.
The new Trade Centre of Knowledge, which the Prime Minister just unveiled, will pool the greatest British expertise to assist partner countries by providing them with the resources they need to take a more active role in the world trade system.