The United Kingdom’s new Developing Countries Trading Scheme (DCTS) has now entered into effect, offering Pakistan and 64 other countries reduced tariffs and simplified trade terms. This initiative replaces the Generalized Scheme of Preferences (GSP) and aims to promote trade between the UK and developing nations, thereby reducing the reliance on aid.
Nigel Huddleston, UK Minister for International Trade, officially launched the DCTS during his visit to Bole Lemi, Ethiopia’s largest industrial business park. Pakistan, as part of the scheme, maintains its enhanced preferences status and will benefit from duty-free exports on 94% of goods sent to the UK. Moreover, over 156 additional products will have tariffs eliminated, and some seasonal tariffs will be streamlined.
Sarah Mooney, UK’s Trade Director for Pakistan and British Deputy High Commissioner in Karachi emphasized the significance of this new scheme, stating that it will strengthen economic ties between the two countries, boosting Pakistan’s exports to the UK and harnessing trade for development.
Currently, the annual trade volume between the UK and Pakistan, including goods and services, stands at £4.4 billion. The DCTS is estimated to save £120 million in tariffs on exports to the UK. To facilitate the participation of Pakistan and other DCTS countries in the global trading system, the UK will provide specialized support through its Trade Centre of Excellence. This support may include assistance in meeting trade standards and engagement in multilateral trade forums.
The implementation of the DCTS marks a significant milestone in the trading relations between the UK and Pakistan, fostering greater economic cooperation and creating opportunities for mutual growth.
