The Government is today [19 July] launching a consultation
on new trading rules that will help countries out of
poverty – and help British businesses and consumers at the
same time.
The Developing Countries Trading Scheme (DCTS) is a major
opportunity to grow free and fair trade with developing
nations. The proposed scheme would apply to 70 qualifying
countries currently and include improvements such as lower
tariffs and simpler rules of origin requirements for
countries exporting to the UK. The scheme will allow
countries to diversify their exports and grow their
economies, while British households and businesses benefit
from lower prices and more choice.
The UK currently operates a similar scheme rolled over from
the EU, but as an independent trading nation can now take a
simpler, more generous, pro-growth approach to trading with
developing countries.
The proposed new UK scheme will mean more opportunity and
less bureaucracy for developing countries, for example by
simplifying rules of origin requirements for the least
developed nations.
It will also help lower costs for UK businesses, leading to
lower prices for consumers across a range of everyday
products, by reducing tariffs on imports from low income
and lower middle-income countries. For example, this could
mean lowering tariffs on products including rice from
Pakistan and trainers from Nigeria.
International Trade Secretary said:
Trade fundamentally empowers people and has done more
than any single policy in history to lift millions of
people around the world out of poverty.
Now the UK is an independent trading nation we have a
huge opportunity do things differently, taking a more
liberal, pro-trade approach that leads to growth and
opportunity.
Countries like Bangladesh and Vietnam have proven it’s
possible to trade your way to better living standards,
and our new Developing Countries Trading Scheme will help
others do the same.
Foreign Secretary said:
Cutting tariffs for poorer countries enables them to
trade their way to genuine independence – and I’m proud
we lead the world in offering that opportunity.
Bangladesh and Vietnam have demonstrated that increasing
trade through schemes like the UK’s DCTS helped them grow
their economy, improve living standards, and drive down
poverty.
Vietnam’s exports to the UK more than tripled between 2009
and 2019. Over this period, the country achieved an average
growth rate of more than 6%, while poverty rates plummeted
from more than 20% in 2010 to an estimated 5.9% in 2020.
UK total imports from Bangladesh more than doubled between
2009 and 2019, during which time the country achieved an
average growth rate of 6.6%. Extreme poverty rates more
than halved from 1991 to 2016/17.
The Government intends its new scheme to be best in class,
and has studied programs in Canada, the US, Japan and the
EU, before constructing an approach that takes some of the
strongest elements of each and builds on them.
The consultation on the UK’s new scheme runs for eight
weeks and seeks the view of all sectors of society,
including businesses, the public, civil society groups,
consumers, associations, partner governments and any other
interested stakeholders.
Views will also be sought from businesses and stakeholders
with an interest across the globe.