The UK Government has published a new policy report on the Developing Countries Trading Scheme (DCTS), which will be implemented in 2023. The report sets out the government's policy for the DCTS, including details on the responses to the public consultation held in 2021 and how these have informed the policy.
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Details
In early 2023, the UK's DCTS will replace the UK's current Generalised Scheme of Preferences (GSP). The government is introducing the DCTS to improve access to the UK market for developing countries.
The DCTS aims to support sustainable growth in developing countries through a more generous unilateral offer.
This has led to provisions in the DCTS which:
- reduce tariffs
- liberalise rules of origin requirements
- simplify the conditions attached to the scheme
The DCTS applies to countries that currently benefit under the UK's GSP.
This includes:
- 47 countries in the GSP Least Developed Country (LDC) Framework
- 18 additional countries or territories classified by the World Bank as low income (LIC) and lower middle-income (LMIC)
It does not apply to countries classified by the World Bank as upper-middle income for 3 consecutive years, or to LICs and LMICs with a free trade agreement (FTA) with the UK.
The government policy response is organised in 4 sections, covering:
- rules of origin
- tariffs
- goods graduation
- conditions
Each section describes how the consultation findings helped inform government policy.