The Philippines is eligible for duty-free access for goods exported to the UK via DCTS

0

The UK is reshaping trade with developing countries through this new trade framework which will replace the UK’s Generalized Scheme of Preferences (GSP) and come into force at the start of 2023. The trading system for developing countries (DCTS) was announced by the Prime Minister at the Commonwealth Heads of Government Meeting (CHOGM) on June 23 and launched on August 16 by the Secretary of State for International Trade.

Total trade (goods and services) between the UK and the Philippines is £2 billion each year. Under the DCTS, the Philippines will continue to enjoy duty-free exports to the UK on more than 80% of eligible products. This will help the Philippines save up to £21m a year. Moreover, the DCTS will remove customs duties on more than 150 additional products. The DCTS will also simplify some seasonal tariffs, meaning additional and easier access for exports from the Philippines to the UK.

The DCTS also offers generous rules of origin, making it easier to produce goods using components from other countries without losing duty-free status. It will be one of the most generous sets of trade preferences of any country in the world, helping to expand trade, boost employment and boost economic growth.

Her Majesty’s Ambassador to the Philippines, Laure Beaufils said:

The launch of the Developing Countries Trading System is a great opportunity for the UK and the Philippines to build on our existing strong bilateral trade and investment relationship. Over 80% of Philippine products exported and 99% of the total value of goods exported from the Philippines will be eligible for duty-free access to the UK. The program will boost our trade and provide new opportunities for Filipino and UK businesses.

Background

The DCTS benefits 65 developing countries and is more generous and simpler than the UK’s current Generalized System of Preferences. It was designed to harness the power of trade to help developing countries grow and prosper. As one of the most generous preferential trade regimes in the world, the DCTS demonstrates the UK’s commitment to building long-term, mutually beneficial relationships with emerging economies that are home to over 3.3 billion people.

The scheme includes zero duty on almost £4.5billion of clothing and apparel imports, £300million of food items and millions of pounds of other consumer goods such as bicycles and children’s toys. DCTS covers 37 countries in Africa, 18 in Asia, 8 in Oceania and 2 in the Americas.

Read in-depth information on developing countries’ trading system and policy response.

Department of International Trade, British Embassy Manila

Email: [email protected]

Share.

Comments are closed.