Feeling the buzz about UK trade offer to developing countries

The Developing Countries Trading Scheme (DCTS) provides market access and trade preferences to 65 developing countries – home to 3.3 billion people – around the world.??

The scheme is widely recognised as the simplest and most generous preference scheme of its kind. Key features include:??

• Increased tariff cuts in key products?
• More flexible rules of origin for the poorest countries?
• Simplified conditions and eligibility criteria??
• More transparent and predictable regime for goods graduation??

Trade from DCTS countries continues to grow. In 2022, DCTS countries exported $1.3 trillion worth of goods, over 5% of global goods exports. Exports help poorer countries grow, create jobs and reduce poverty. In the long term, this benefits the UK by building new markets for our goods and services and strengthening bonds between us. This is why the UK has introduced the DCTS, aimed at boosting trade with developing countries.???

On a recent visit to central Asia, the Foreign Secretary, Lord Cameron visited four DCTS beneficiaries who are taking full advantage of the scheme. Here’s how:?

Mongolia:???

The DCTS has slashed tariffs on Mongolian honey by 16 percentage points providing UK consumers with increased access to antioxidant-rich, high-quality Mongolian honey.? The UK imported nearly ￡750,000 of honey from Mongolia in 2022. More widely, Mongolia receives duty free access to the UK market on 92% of goods tariff lines.

Uzbekistan:???

Uzbekistan also receives 92% duty free access under the DCTS but has maximised advantages from the scheme in different ways. The top eligible exports from Uzbekistan include industrial items like plastics, rubber and machinery. For example, over ￡3.5 million of polyethylene, used to make cling film to keep our food fresh exported from Uzbekistan each year, is offered a 6 percentage point reduction in tariffs.

Kyrgyzstan:???

Whilst Mongolia and Uzbekistan are using 92% duty free access to maximise honey and industrial exports, Kyrgyzstan’s top exported products under DCTS are textiles some of which are used in clothing and homeware for UK consumers. Textiles can now be exported tariff free to the UK.

Tajikistan:???

For the first time, Tajikistan is also eligible to receive zero percent tariffs on 92% of product lines thanks to simplifications in the scheme – this means it sees duties cut on over 3000 products. The top products exported from Tajikistan under the scheme include textiles like Kyrgyzstan but also machinery such as transmission apparatus for radios.???

Benefit to UK consumers:??

The improvements in the DCTS scheme have provided exciting new opportunities for developing countries. However, UK consumers and businesses have the potential to benefit from over ￡770 million of tariff savings under the scheme, leading to increased access to a wide array of products: everything from honey to machinery to textiles. And perhaps more importantly, the DCTS is helping to strengthen ties with key partners around the world, including those in central Asia that are important in our efforts to confront Russia’s aggression towards Ukraine and its neighbours.???

Truly un-bee-lievable.??