UK relaxes import rules, boosting retailers & developing nations
The measures are part of an upgrade to the UK's Developing Countries Trading Scheme (DCTS), which aims to lower prices on everyday goods while promoting trade with some of the world's poorest nations. They will give UK consumers greater access to competitively priced imports, such as clothing.
The UK has upgraded its Developing Countries Trading Scheme to simplify imports and boost trade with developing nations. The reforms include relaxed rules of origin, supporting tariff-free access for goods like garments from countries such as Bangladesh and Sri Lanka. Retailers like M&S and Primark are set to benefit from lower costs and stronger supply chains.
Key reforms include simplified rules of origin, allowing more products from countries such as Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free — even when made using components from across Asia and Africa. Countries like Bangladesh and Cambodia will continue to enjoy zero tariffs on goods such as garments and electronics, British Embassy Phnom Penh said in a release.
'The world is changing. Countries in the Global South want a different relationship with the UK as a trading partner and investor, not as a donor. These new rules will make it easier for developing countries to trade more closely with the UK. This is good for their economies and for UK consumers and businesses,' said Minister for International Development Jenny Chapman.
Retailers such as M&S and Primark are expected to benefit significantly, gaining improved access to competitively priced imports and more resilient supply chains. Over £16 billion (~$ 21.52 billion) worth of UK imports have already benefitted from tariff savings under the DCTS since its launch in June 2023.
'We welcome the changes to the DCTS rules of origin for garments which remove the potential cliff edge when a country graduates from Least Developed Country status. This will help us to maintain our existing supply chain strategy in our key sourcing markets in Asia, such as Bangladesh and Cambodia,' interim chief executive at Primark, Eoin Tonge said.
The changes also include new support measures to help exporters in developing nations meet UK import standards, alongside efforts to ease trade in services like digital, legal, and financial sectors. These steps are part of the UK's broader 'Trade for Development' agenda and its newly published Trade Strategy, aimed at growing the economy, supporting households, and strengthening international partnerships.
The announcement was made at a joint reception hosted by the Department for Business and Trade (DBT) and the Foreign, Commonwealth & Development Office (FCDO), attended by British business leaders and foreign ambassadors.
'UKFT welcomes these additional changes to the Rules of Origin under the DCTS, which will bring real benefits to the fashion industry in the UK and in DCTS countries,' added Adam Mansell, CEO, The UK Fashion & Textiles Association.
'We warmly welcome the UK's Trade Strategy. The new rules allowing greater regional sourcing for garments while retaining duty-free access to the UK are a game-changer,' stated Yohan Lawrence, secretary general of the Joint Apparel Association Forum (JAAF), Sri Lanka.
Fibre2Fashion News Desk (HU)
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