UK Implements New Trading Scheme to Boost Developing Countries’ Prosperity

Radical Simplification of Trading Rules and Tariff Cuts The United Kingdom (UK) has announced the implementation of its new post-Brexit Developing Countries Trading Scheme (DCTS), which simplifies trading rules and reduces tariffs on products from developing countries. This move is expected to save businesses and consumers millions of pounds annually. The scheme covers 65 countries, including Nigeria, and aims to be more generous than the EU scheme the UK was previously a member of.

Benefits for Developing Countries The DCTS is designed to benefit developing countries by enabling them to diversify their exports and increase economic prosperity while creating job opportunities. Under the scheme, Nigerian goods will automatically qualify for duty-free access to the UK, with enhanced preferential access granted to nearly 3,000 products. For instance, tariffs on cocoa paste will be reduced by 4.5%, fruit juices by 26.5%, and prepared tomatoes by 14%.

Trade as a Tool for Development The UK’s Minister for International Trade, Nigel Huddleston, launched the DCTS during his visit to Ethiopia’s Bole Lemi industrial business park. Emphasizing the potential of trade to drive development, Minister Huddleston highlighted the opportunities the scheme brings for businesses worldwide, including the diversification of supply chains. The scheme will also benefit UK businesses and consumers by lowering import costs across a wide range of products. The Minister for Development and Africa, Andrew Mitchell, emphasized the inclusive nature of the scheme, highlighting its support for women-owned businesses through the UK Trade Partnership program.