UK launches new landmark trading scheme for developing countries

Tags: Economy/Finance International News

The UK launched the Developing Countries Trade Scheme (DCTS) on 19 June.

An overview of the news

• This trade scheme provides a significant opportunity for India and 65 other poor and developing countries.

• The scheme simplifies trading rules and cuts tariffs on products entering the UK from 65 developing countries, including Bangladesh.

About Developing Countries Trading Scheme (DCTS)

• This is a preferential trading program that has been introduced by the United Kingdom.

• The DCTS replaces similar arrangements that were previously in place during the UK's membership in the European Union.

• The primary objective of the scheme is to support trade and promote economic growth for 65 poor and developing countries.

• Through the DCTS, these countries are granted preferential treatment in terms of trade, with reduced or eliminated tariffs on certain products imported into the United Kingdom.

• By providing favorable trading conditions, the DCTS aims to enhance market access for these countries, stimulate economic activity, and foster mutually beneficial trade relationships.

Benefits of the scheme

• It creates opportunities for businesses and supports livelihoods by facilitating trade between participating countries and the United Kingdom.

• By lowering trade barriers and providing preferential treatment, the scheme aims to create employment opportunities for individuals in participating countries.

• It plays a role in diversifying local and international supply chains, which contributes to job creation and economic growth in these countries.

• Through increased market access and favorable trading conditions, the scheme helps participating countries to access the UK market and expand their export capabilities.

• By increasing exports, countries can diversify their economies and reduce their dependence on limited products or markets.