New trade rules to lower the price of some goods in the UK
British consumers and businesses are set to benefit from a package of new trade measures unveiled on Thursday (10 July), which will simplify imports from developing countries
This will help to lower prices on everyday goods while supporting jobs and growth in some of the world’s poorest nations, the Department for Business and Trade said in an accompanying statement.
The measures will give UK consumers greater access to competitively priced imports, from clothes to food and electronics, as upgrades to the Developing Countries Trading Scheme (DCTS) make it easier for businesses to trade with the UK, helping to lower prices on the high street.
Upgrades include simplified rules of origin, enabling more goods from countries like Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free, even when using components from across Asia and Africa. They also ensure countries such as Bangladesh and Cambodia continue to benefit with zero tariffs on products like garments and electronics.
This will open up new commercial opportunities for UK businesses to build resilient supply chains, invest in emerging markets, and tap into fast-growing economies, the department said.
“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,” said Minister for International Development Jenny Chapman.
“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,” she said.
How does the DCTS work?
The DCTS allows some of the world’s poorest countries to export to the UK duty and quota-free, with over £16 billion in UK imports benefiting from tariff savings since its launch in June 2023.
In addition to the DCTS changes, the UK will:
- Offer targeted support to help exporters in developing countries access the UK market and meet import standards; and
- Make it easier for partner countries to trade services – such as digital, legal, and financial services, by strengthening future trade agreements. This will create new opportunities for UK businesses to collaborate and invest in fast-growing sectors.
The reforms will support trade with emerging markets in Asia and Africa, strengthening the UK’s global partnerships, with major retailers such as M&S and Primark expected to benefit.
