UK Government plans trade scheme with developing countries
The UK Government is to launchanewtradeschemethat would give developing countries access to lower tariffs.
Aimed at helping countries out of poverty, the consultation will look at trading rules to boost business both abroad and in the UK.
The UK Government says the Developing Countries Trading Scheme (DCTS) is a “major opportunity” and will help grow free and fair trade with developing nations.
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 hugeopportunitydothingsdifferently, 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.”
The proposed scheme would apply to 70 qualifying countries currently and include improvements such as lower tariffs and simpler rules of origin requirements for nations exporting to Britain.
Officials believe it will also allow countries to diversify their exports and grow their economies, while British households and businesses benefit from lower prices and more choice.
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.”
The UK currently operates a similarschemerolledoverfrom the EU, but believes the change couldseelesstariffsonimports 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.
It will apply to 47 countries in the Least Developed Country Framework (LDCF) and 23 additional countries classified by the World Bank as low-income and lower-middle-income countries.
Other low-income and lower-middle-income countries are not included in the scheme because they benefit from preferential terms offered by free trade agreements with the UK.