United Kingdom’s newly launched Developing Countries Trading Scheme (DCTS) could uplift Pakistani exports facilitating bilateral trade and promoting growth in Pakistan.
UK’s Member of the Parliament, Anne-Marie Trevelyan, launched the DCTS on Tuesday, providing tariff reductions and simpler terms of trade to 65 countries, including Pakistan, which will be implemented early next year.
The scheme aims to help these countries to grow and prosper, and in turn tackle poverty by harnessing the power of trade. The DCTS replaces the UK’s Generalized Scheme of Preferences (GSP), a preferential trading system that provides tariff removals and reductions on various products.
Under the DCTS, Pakistan will continue to benefit from duty-free exports to the UK. In addition, the scheme will remove tariffs on over 156 additional products. It will also simplify some seasonal tariffs, meaning additional and simpler access for Pakistan’s exports to the UK.
In total, 94 percent of goods exported from Pakistan will be eligible for duty-free access to the UK, saving £120 million in tariffs under the scheme.
Currently, the total trade, goods and services between the UK and Pakistan each year stands at £2.9 billion.
Pakistan, and other DCTS countries, will also be supported to participate in the international trading system through the UK’s Trade Centre of Excellence, which will provide specialist support so that they can fully participate in the global trading system. This will include support for meeting trade standards and participating in multilateral trade fora.
UK’s Trade Director for Pakistan and British Deputy High Commissioner, Sarah Mooney, said, “A prosperous UK-Pakistan relationship matters. As we celebrate 75 years of our bilateral relations, we want to further cement our strong ties and double bilateral trade by 2025. The newly announced DCTS Scheme will be pivotal in achieving this.”
