Europe UK (Commonwealth Union) – The UK continues to take advantage of its ability to independently trade with the world outside since Brexit as it recently implemented significant changes to its trading rules and tariffs on products originating from developing countries. These reforms, known as the Developing Countries Trading Scheme (DCTS), mark a post-Brexit initiative that will lead to substantial savings for UK businesses and consumers.
The DCTS encompasses a total of 65 countries, housing a population of over 3.3 billion people, with more than half located in Africa. This scheme simplifies trading regulations and eliminates or reduces tariffs, making it more favorable than the previous EU scheme which the UK was subjected to.
The implementation of the DCTS will save UK businesses an estimated £770 million annually, achieved through the removal or reduction of tariffs on imports amounting to over £9 billion. This not only increases consumer choice for UK citizens but also has the potential to lower prices on a wide range of goods, including clothing, food, and children’s toys. Additionally, this scheme presents new opportunities for UK businesses to engage in international trade, contributing to the growth of the UK economy. As developing countries gradually enhance their trade with the UK under this scheme, businesses could save millions more in import costs.
Nigel Huddleston, the Minister for International Trade, launched the scheme during a visit to Bole Lemi, Ethiopia’s largest industrial business park. Ethiopia, which already maintains a trading relationship worth £838 million with the UK, currently enjoys zero tariffs on all goods exported to the UK. With the implementation of the new scheme, Ethiopia, along with 46 other countries, will have expanded access to components from numerous countries, further enhancing their prospects for trade with the UK.
“This scheme is a brilliant example of the UK taking advantage of its status as an independent trading nation and I am excited to see it implemented today,” said Minister Huddleston.
