THIRTY-TWO African countries are set to benefit from the United Kingdom’s intention to lower tariffs o
n goods from developing nations, aiming to restore trading norms and generate significant cost savings for consumers and businesses. The British High Commission in Abuja, Nigeria, issued a statement on Monday, highlighting the benefits of this action.
The new initiative, known as the Developing Countries Trading Scheme (DCTS), came into effect on June 19, 2023, replacing the UK’s Generalised Scheme of Preferences (GSP). The DCTS is a more generous and simplified preferential trading scheme specifically designed to enhance trade with developing countries and support their economic development.
Compared to the previous GSP, the DCTS streamlines trading regulations, expands the range of eligible items, and significantly reduces or eliminates tariffs. This increased liberalisation positions the UK’s programme as more favourable than the European Union’s former scheme. The DCTS aims to assist emerging nations in diversifying their economies, boosting exports, and creating job opportunities. Over time, businesses stand to save millions in import costs through expanded commerce with the UK under this scheme.
Nigel Huddleston, the UK’s Minister of International Trade, officially unveiled the programme during a visit to Bole Lemi, Ethiopia’s largest industrial business park. He described it as a ‘brilliant example of the UK utilising its status as an independent trading nation’ and expressed enthusiasm for its implementation.
Huddleston emphasised the programme’s potential to create opportunities for businesses worldwide, supporting livelihoods, job creation, and diversifying supply chains both locally and internationally. Furthermore, he highlighted the benefits for UK businesses and consumers, citing reduced import costs for a wide range of products.
The DCTS applies to a total of 65 countries categorised as least-developed countries (LDCs) by the United Nations and low-income or lower-middle-income countries according to the World Bank. Among the beneficiaries are several African nations, including Angola, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Lesotho, Liberia, Madagas
car, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Sao Tome & Principe, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Tanzania, Togo, Uganda, and Zambia.
The implementation of the DCTS is expected to open up new trade opportunities, promote economic growth, and foster closer ties between the UK and these developing nations.
