The United Kingdom’s Developing Countries?Trading Scheme (DCTS) came into effect, giving Pakistan and 64 other nations tariff reductions and simplified trade arrangements.
The new arrangement, which has replaced the Generalised System of Preferences (GSP), will assist increase trade between the UK and developing nations, decreasing the need for aid.
In this regard, Sarah Mooney, who is the UKs Trade Director for Pakistan and British Deputy High Commissioner, in Karachi stated This is a major development in the trading relations between the UK and Pakistan.
This important new scheme will further strengthen the economic ties between our two great countries, helping Pakistan to bolster its exports to the UK and harness the power of trade for development,
Earlier this week, UK Minister for International Trade Nigel Huddleston announced the scheme during a visit to Bole Lemi, Ethiopia’s largest industrial business park.
Pakistan has kept its improved preferential status under the DCTS and will keep profiting from duty-free exports to the UK on 94 percent of items exported.
Moreover, it will also eliminate duties on an additional 156 products and streamline some seasonal tariffs.
Total annual trade (goods and services) between the UK and Pakistan currently amounts to £4.4 billion. The initiative is estimated to save £120 million in tariffs on shipments to the United Kingdom.
Pakistan and other DCTS countries will be assisted in completely participating in the international trade system by the UK’s Trade Centre of Excellence, which will provide specialised assistance in fully participating in the global trading system. This could involve assistance in meeting trade standards as well as participation in multilateral trade forums.