Developing Countries Trading Scheme: government policy response - Policy Paper, United Kingdom Department for International Trade

The government is introducing the Developing Countries Trading Scheme (DCTS) to improve access to the UK market for developing countries. The DCTS will come into effect in early 2023. In line with the government’s new International Development Strategy, the scheme contributes to developing countries’ integration into the global economy, creating stronger trade and investment partners for the future, and strengthening supply chains. It grows free and fair trade with developing countries, boosting the economy and supporting jobs in those countries, as well as in ours. The objectives guiding the design of the DCTS include making the new scheme simpler for partner countries and businesses to understand and use. The DCTS aims to support sustainable growth in developing countries through a more generous unilateral offer. The new scheme also aims to demonstrate the UK’s leadership in the use of trade for development. This has led to provisions in the DCTS which reduce tariffs, liberalise rules of origin requirements and simplify the conditions attached to the scheme. The DCTS applies to countries that currently benefit under the UK’s Generalised Scheme of Preferences (GSP), (see Annex 1 for further information). The GSP includes 47 countries in the GSP Least Developed Country (LDC) Framework and 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.