UK launches new Developing Countries Trading Scheme (DCTS) to replace GSP
The UK Government has launched the new Developing Countries Trading Scheme (DCTS) to replace the Generalised Scheme of Preferences (GSP). The DCTS will replace the UK’s GSP, which the UK introduced post-Brexit, in early 2023.
The DCTS means UK businesses can import from 65 countries across Africa, Asia, Oceania and the Americas, with less red-tape and lower costs.
The scheme means that a wide variety of products, including clothes and shoes, will benefit from lower or zero tariffs.
The scheme also simplifies complex trade rules such as rules of origin, which dictate what proportion of a product must be made in its country of origin. The Government gave the example of making it easier for businesses like textile firm DBL Group from Bangladesh to export.
Mohammed Jabbar, Managing Director of DBL Group, 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.”
The scheme builds on a wider programme from the UK to drive a “free trade, pro-growth agenda across the globe, using trade to drive prosperity and help eradicate poverty,” the Government said.
This includes a new initiative called Platinum Partnerships, designed to grow trade between the UK and selected lower and middle-income Commonwealth countries and reduce dependency on aid.
The Prime Minister also recently announced a new Trade Centre of Expertise, which will bring together the best of British expertise to support partner governments, giving them the tools they need to more actively participate in the global trading system.
UKFT will provide a full update for members shortly.