UK’s Developing Countries Trading Scheme could save Bangladesh up to £315 million annually in UK export tariffs, say experts.
Introduced in January, the UK’s Generalized System of Preferences (GSP), known as the DCTS, grants duty-free access to UK markets for developing nations, excluding arms.
Sarah Cooke, British High Commissioner to Bangladesh, emphasized that the scheme will propel Bangladesh’s shift from Least Developed Country (LDC) status and elevate the UK-Bangladesh trading partnership.
Tailored with Bangladesh in mind, the DCTS will significantly assist the country due to its special consideration by the UK.
Cooke anticipates that the DCTS will boost Bangladesh’s economic resilience, although diversifying exports remains challenging.
Notably, the threshold for non-originating content in imports rose from 70 to 75% for numerous products.
Bangladesh can source inputs from 95 countries without sacrificing duty-free status by deeming these inputs as originating domestically.
Bangladesh will gain £315 million in benefits annually, while a joint tariff cut of £535 million will benefit Bangladesh, Pakistan, and Cambodia.
The DCTS prioritizes trade and prosperity, with its continuation linked to upholding human and labor rights as per international conventions.
The UK will closely monitor compliance in areas such as civil and political rights, anti-corruption, climate change, and the environment.
With only 0.7% of its $688 billion imports originating from Bangladesh, the UK market presents significant potential for Bangladesh.
