From The Daily Star Star
Business Report
Wed Aug 17, 2022 03:23 PM Last update on: Wed Aug 17, 2022 03:26 PM
Bangladesh will continue to benefit from duty-free exports to the United Kingdom under its new trading scheme, which will replace the country’s Generalised Scheme of Preferences (GSP).
The UK is going to launch the scheme titled “Developing Countries Trading Scheme (DCTS)” in early 2023.
The scheme will provide tariff reductions and simpler terms of trade to 65 developing countries, including Bangladesh, according to a press release of the British High Commission in Dhaka.
“The DCTS will be one of the most generous sets of trading preferences of any country in the world, helping to grow trade, boost jobs and drive economic growth.”
“This new scheme demonstrates the UK’s commitment to strengthening a long-term and mutually beneficial economic relationship with Bangladesh.”
The DCTS will provide a clearer and streamlined trading arrangement for Bangladesh thanks to simplified and more flexible rules of origin, making it easier to produce goods using components from other countries without losing duty-free status, the UK embassy said.
British High Commissioner to Bangladesh Robert Chatterton Dickson said the DCTS will harness the power of trade and the private sector to enable developing countries like Bangladesh to grow and prosper.
The UK is one of Bangladesh’s biggest export markets, with an annual trade partnership worth over $4 billion.
Even after Bangladesh graduates from the least-developed country status in 2026, it will retain duty-free access to the UK for 98 per cent of its exports, including ready-made garments, Dickson said.
“We look forward to increasing trade in both directions as an increasingly prosperous Bangladesh buys more high-quality UK goods and services.”
The DCTS contributes to developing countries’ integration into the global economy, creating stronger trade and investment partners for the future.
It also reflects the UK’s commitments to human rights and labour standards, incorporating powers to alter trade preferences in the event of serious human or labour rights violations.
The DCTS will also support the UK’s obligation on anti-corruption, climate change and environment conventions, said the press release.
