Top Facts - Developing
Countries Trading Scheme
On 7 June 2023, the UK government launched the Developing
Countries Trading Scheme (DCTS) in Manila – a major milestone in
opening up new trade and investment opportunities between the two
countries.
His Majesty’s Ambassador to the Philippines Laure Beaufils opened
the event, with the Philippine Department of Trade and Industry
Secretary Alfredo Pascual joining as the guest of honour.
Representatives from the Philippine government, exporters to the
UK, and industry associations were also in attendance. The launch
was delivered in partnership with the Philippine Department of
Trade and Industry (DTI) and the British Chamber of Commerce of
the Philippines (BCCP).
Speaking at the launch, His Majesty’s Ambassador, Laure Beaufils
said:
I am delighted to announce that the UK’s new unilateral
preferences scheme, the Developing Countries Trading Scheme
(DCTS), will come into effect on 19 June 2023. The DCTS will cut
tariff, remove conditions and simplify trading rules. It will
increase trade and strengthen the trade relationship between the
UK and the Philippines. I strongly encourage businesses to take
full advantage of this new scheme.
Trade Preferences Policy Advisor Sabiha Ahmed delivered a keynote
highlighting high potential value chains and products that can
benefit from the new scheme. This was based on research into UK
retailers’ and consumers’ buying considerations, and insights
from Filipino producers, financiers, trade programmes and
policymakers. The programme also included presentations on
customs processes and agricultural standards for Philippine
exporters.
Trade between the Philippines and the UK reached an all-time high
of £2.4 billion in 2022. The Philippines exports a range of high
value products to the UK including tuna, shirts, and starch,
which benefit from significant tariff reductions under the DCTS.
. DCTS has the potential to save Philippine businesses over £20
million a year on UK export tariffs.
Philippine exports to the UK can benefit from an additional 150+
tariff cuts under the DCTS. DCTS Enhanced Preferences offer
generous tariff preferences and facilitate access to the UK
market for Philippine businesses across a wide range of
industries.
Also present during the launch was Department of Trade and
Industry (DTI) Secretary Fred Pascual. In his opening message, he
said:
The UK-DCTS, as one of the most generous trade preference schemes
in the world, enables the Philippines to have continued access to
enhanced preferences. We look forward to our country having
access to duty-free, quota-free trade on 92 percent of our
eligible goods—or 99 percent of our exports to the UK.
The UK Government is launching the DCTS to replace the
Generalised Scheme of Preferences with the aim to grow free and
fair trade with selected countries. It offers one of the most
generous sets of trading preferences in the world and
demonstrates the UK’s commitment to building long term, mutually
beneficial relationship with the Philippines.
The Trade Preferences Policy Advisor also delivered information
sessions to DTI, BCCP, and other industry associations. The
sessions focused on sharing insights on current trends, UK market
purchasing criteria, barriers to trade and what can be done to
unlock the Philippines’ trade and investment potential. Attendees
also learnt about other key trade-related information including
quality certification and customs requirements.
