The Developing Countries Trading Scheme (DCTS) of the United Kingdom has recently gone into effect, offering Pakistan and 64 other nations reduced tariffs and easier trade terms.
The Generalized Scheme of Preferences (GSP) was replaced by the new program, which will encourage trade between the UK and developing nations while lowering the demand for aid.
Sarah Mooney, UK’s Trade Director for Pakistan and British Deputy High Commissioner, Karachi, said that this important new scheme will further strengthen the economic ties between our two great countries, helping Pakistan to boost its exports to the UK and harness the power of trade for development.
Nigel Huddleston, the UK’s Minister for International Trade, unveiled the program on Monday while touring Bole Lemi, Ethiopia’s largest industrial business park.
Pakistan has kept its enhanced preferences status under the DCTS and will continue to benefit from duty-free exports to the UK on 94% of exported commodities. Additionally, it will streamline some seasonal taxes and eliminate levies on over 156 additional products.
The value of all annual trade (goods and services) between the UK and Pakistan is presently £4.4 billion. The program is anticipated to save £120 million in tariffs on shipments to the UK.
Through the UK’s Trade Centre of Excellence, which will offer specialized help to fully participate in the international trading system, Pakistan and other DCTS nations will be encouraged to engage in trade. Support for adhering to trade regulations and taking part in global trade forums may fall under this category.
Over £250 million in bed linen exports to the UK on average each year and approximately £100 million in jeans exports to the UK will both benefit from a 12 percent reduction in import duties because of the DCTS in Pakistan.
To represent the diverse and exciting trade prospects available globally, DCTS covers two nations in the Americas, 26 countries in Asia, Oceania, and the Middle East, and 37 countries in Africa. The plan was unveiled last year, and legislation to implement it has now been completed.