Developing Countries Trading Scheme

Monday 19th June 2023 Written Statements

[The Minister of State, Department for Business and Trade (Nigel Huddleston)]

On 19 June 2023 the developing countries trading scheme entered into force. A written ministerial statement announcing the developing countries trading scheme and detailing proposed changes was issued on 6 September 2022 following the launch of the scheme by the former Trade Secretary on 16 August.

The developing countries trading scheme provides generous access to UK markets for 65 developing countries. The scheme is an important component of the Government efforts to maximise the benefits of trade for developing countries. The scheme delivers greater market access by cutting more tariffs, simplifying rules so more goods qualify for duty free tariffs and enabling more countries to have access to more generous tariffs.

Developing countries trading scheme tariff rates offer tariff savings of over £770 million per year, helping to reduce prices and increase choice for UK consumers, particularly for household items such as clothes and food.

The UK’s approach to trade for development as set out in the international development strategy is to combine generous market access with aid for trade and advocacy at the WTO to increase trade with developing countries. By championing free, fair and inclusive trade, the UK maximises the benefits of trade for developing countries whilst building resilient supply chains and markets for the future for the benefit of the UK.

The developing countries trading scheme represents a marked increase in UK market access for developing countries, in particular for 37 least developed countries. When combined with our network of eight economic partnership agreements, the new scheme means that the UK now offers duty free or nearly duty free trade in goods to over 90 developing countries.

In addition to this, the UK has spent over £830 million on aid for trade since 2015, delivering major impact in beneficiary countries by addressing burdensome regulations and delays at customs, increasing the role of women in trade and supporting developing countries to negotiate and implement trade agreements.

Changes to the UK’s trade preferences are possible because as an independent trading nation we can go further and offer developing countries one of the most generous sets of trade preferences in the world, surpassing those of the EU and USA. Since its launch the developing countries trading scheme has received widespread praise in developing countries and at the WTO.

Further information on the developing countries trading scheme can be found here: https://www.gov.uk/government/collections/trading-with-developing-nations. A series of detailed guides has been developed alongside an interactive tool which provides product or country specific information on tariffs and rules of origin. Digital guides make it easier for businesses to understand and use the scheme.

Developing countries trading scheme regulations can be found at these links:

The Trade Preferences Scheme (Developing Countries Trading Scheme) Regulations 2023: http://www.legislation.gov.uk/id/uksi/2023/561

Rules of Origin: The Customs (Origin of Chargeable Goods: Developing Countries Trading Scheme) Regulations 2023 (legislation.gov.uk)

[HCWS863]