The Philippines will be eligible for over 99% duty free access (by value) of total exported goods to the UK via the Developing Countries Trading Scheme (DCTS).
Article continues below
The UK is reshaping trade with developing countries through this new trading framework that will replace the UK Generalised Scheme of Preferences (GSP) and will come into force in early 2023. The Developing Countries Trading Scheme (DCTS) was announced by the Prime Minister at the Commonwealth Heads of Government Meeting (CHOGM) on 23 June and launched on 16 August by the Secretary of State for International Trade.
Total trade (goods and services) between the UK and Philippines amounts to £2 billion each year. Under the DCTS, the Philippines will continue to benefit from duty free exports to the UK on more than 80% of eligible products.
This will help Philippines save up to £21 million a year. In addition, the DCTS will remove tariffs on over 150 additional products. The DCTS will also simplify some seasonal tariffs, meaning additional and simpler access for the Philippines’ exports to the UK.
The DCTS also offers generous rules of origin, making it easier to produce goods using components from other countries without losing duty-free status. It 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.
The DCTS benefits 65 developing countries and is more generous and simpler than the existing UK Generalised Scheme of Preferences. It has been designed to harness the power of trade to help developing countries grow and prosper.
As one of the most generous preferential trading schemes in the world, the DCTS demonstrates the UK’s commitment to building long term, mutually beneficial relationships with emerging economies that are home to more than 3.3 billion people.
The scheme includes zero tariffs on almost £4.5 billion of imports of clothing and apparel, £300 million of foodstuffs and millions of pounds worth of other consumer products such as bicycles and children’s toys. DCTS covers 37 countries in Africa, 18 in Asia, 8 in Oceania and 2 in the Americas. ■