Over 99 Percent of total goods that Tanzania gets to export to the United Kingdom will be eligible for duty free access to the UK effective from 2023.
The United Kingdom’s High Commissioner to Tanzania, David Concar explains the exports entitled for the duty-free access to Britain are goods solely produced in Tanzania.
The qualifications also include products made in Tanzania but using components from other countries.
“Thanks to simpler and more generous ‘Rules of Origin,” Tweets Concar, the UK Envoy to Tanzania on his handle.
The UK Government has launched the new Developing Countries Trading Scheme (DCTS) to replace the previous Generalised Scheme of Preferences (GSP).
The Developing Countries Trading Scheme, coming into effect in 2023, replaces the United Kingdom’s GSP, which the UK introduced in the post-Brexit era.
Under the DCTS, UK businesses can import from 65 countries across Africa, Asia, Oceania and the Americas, with less red-tape and lower costs.
The scheme means that a wide variety of products, including clothes and shoes, will benefit from lower or zero tariffs.
The scheme also simplifies complex trade rules such as rules of origin, which dictate what proportion of a product must be made in its country of origin.
The scheme builds on a wider programme from the UK to drive a “free trade, pro-growth agenda across the globe, using trade to drive prosperity and help eradicate poverty,” the UK Government explains.
This includes a new initiative called Platinum Partnerships, designed to grow trade between the UK and selected lower and middle-income Commonwealth countries and reduce dependency on aid.
The Developing Countries Trading Scheme aims to support sustainable growth in developing countries through a more generous unilateral offer, such as:
- Reducing tariffs
- Liberalise rules of origin requirements
- Simplify the conditions attached to the scheme
The DCTS applies to countries that currently benefit under the previous GSP including 47 countries in the Least Developed Country (LDC) Framework.
There are 18 additional countries or territories classified by the World Bank as low income (LIC) and lower middle-income (LMIC).
Angelina Ngalula the Chairperson of the Arusha-based, East African Business Council (EABC) believes this is a great milestone for Tanzania and the United Kingdom.
“It will increase trade and relationship between the two countries,” she says.