DCTS to replace UK's GSP

COLOMBO (News 1st); The Government of United Kingdom is set to introduce Developing Countries Trading Scheme (DCTS) in early 2023, replacing the UK’s current Generalised Scheme of Preferences (GSP).

According to the UK Government, the DCTS aims to support sustainable growth in developing countries through a more generous unilateral offer.

The DCTS applies to countries that currently benefit under the UK’s GSP, and has provisions which aims to reduce tariffs, liberalise rules of origin requirements and to simplify the conditions attached to the scheme.

However, the UK Government has stated that the DCTS does not apply to countries classified by the World Bank as upper-middle income for 3 consecutive years, or to low income (LIC) and lower middle-income (LMIC) countries with a free trade agreement (FTA) with the UK.