A Brexit supporter poses for a photograph with a Union flag as he waits for the festivities to begin [Study International]
In a move aimed at bolstering trade and strengthening economic ties, the United Kingdom (UK) announced the launch of its new post-Brexit Developing Countries Trading Scheme (DCTS) on Monday, June 19, 2023.
The scheme, which simplifies trading rules and reduces tariffs, is expected to save businesses and consumers in developing countries, including Nigeria, millions of pounds annually.
According to a statement released by the British Deputy High Commission in Nigeria, the DCTS will cover 65 countries, including Nigeria, facilitating duty-free access to the UK for over 99% of goods exported from Nigeria. Additionally, Nigeria will benefit from enhanced preferential access for nearly 3,000 products.
The primary objective of the DCTS is to support developing countries in diversifying their economies and increasing exports, thereby promoting prosperity and reducing their reliance on aid. The UK government's decision to remove or reduce tariffs on various products demonstrates its commitment to this goal. Notably, the statement highlighted that tariffs on cocoa paste will be reduced by 4.5%, fruit juices by 26.5%, and prepared tomatoes by 14%.
The new scheme surpasses the European Union (EU) scheme that the UK was previously part of by expanding the number of qualifying products and simplifying trading rules. This enhancement is expected to further facilitate trade for developing countries, fostering economic growth and job creation.
Minister for International Trade Nigel Huddleston, who launched the scheme during his visit to Ethiopia's largest industrial business park, Bole Lemi, expressed his enthusiasm for the DCTS, emphasising its significance in leveraging the UK's status as an independent trading nation.
The UK Deputy British High Commissioner in Lagos, Ben Llewellyn-Jones, emphasised the importance of Nigeria as one of the UK's key partners in Africa. He affirmed the UK government's commitment to collaborate with Nigerian businesses and exporters to strengthen trade ties.
Llewellyn-Jones highlighted the substantial benefits of the DCTS, including the abolition of tariffs on more than 3,000 everyday products that Nigeria currently exports, such as cocoa, cotton, plantain, flowers, fertilisers, tomatoes, frozen shrimps, and sesame.
He emphasised that the overarching aim of the scheme is to promote trade with developing countries, fueling economic growth and supporting job creation in both the UK and partner nations.
