Foreign,Commonwealth and Development Office
New UK scheme to drive trade with developing countries
- Also published by:
- Department for International Trade
The proposed new Developing Countries Trading Scheme aims to grow trade with lower income nations, supporting jobs and growth across the globe and at home.
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 Liz Truss 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 Dominic Raab 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.
Latest News from
Foreign,Commonwealth and Development Office
Iran should take this opportunity to conclude the deal while it is still possible: E3 at Security Council30/06/2022 16:25:00
Joint statement by UK, France and Germany ahead of the Security Council meeting on the implementation of resolution 2231
Russia's government has miscalculated in Ukraine: UK statement to the OSCE23/06/2022 16:05:00
Ambassador Neil Bush reiterates the UK's long-standing support to Ukraine in the face of the Russian government's brutal war.
Foreign Secretary's press conference statement in Turkey, June 202223/06/2022 15:05:00
Foreign Secretary Liz Truss gave a press conference statement in Ankara on the UK and Turkey's longstanding alliance, work as NATO partners and the war in Ukraine.
Alok Sharma joins the South African Government for a ministerial roundtable22/06/2022 15:15:00
COP President reinforced international commitment to supporting South Africa’s just energy transition and announced new £1.5 million in UK technical assistance.
New UK Special Envoy to the Horn of Africa and Red Sea appointed21/06/2022 12:20:00
Sarah Montgomery OBE has been appointed UK Special Envoy to the Horn of Africa and Red Sea.
British nationals released from Afghanistan21/06/2022 10:15:00
UK welcomes the release of 5 British men detained in Afghanistan.
Britons urged to get travel smart before they go abroad21/06/2022 09:15:00
The Foreign, Commonwealth & Development Office has started a new campaign urging Britons to Get Travel Smart before travelling abroad this summer.
UK statement following the conclusion of the WTO Ministerial Conference17/06/2022 11:29:00
The UK's International Trade Secretary, Anne-Marie Trevelyan, issued a statement following the conclusion of the 12th WTO Ministerial Conference in Geneva.
We want to help people start, stay and succeed in work: Minster for Disabled People statement to UN General Assembly16/06/2022 14:10:00
Chloe Smith recently (14 June 2022) delivered the UK statement at the 15th Conference of States Parties to the UN Convention on the Rights of Persons with Disabilities.