UK & Philippines unlock trade potential with new DCTS Launch

Projections indicate that the DCTS could save the Philippines' businesses over £20 million a year on UK export tariffs, the UK government said in a press release.

The launch event, executed in collaboration with the Philippine Department of Trade and Industry (DTI) and the British Chamber of Commerce of the Philippines (BCCP), was spearheaded by the UK’s ambassador to the Philippines, Laure Beaufils. Representatives from the Philippine government, exporters to the UK, and key industry associations were in attendance at the event. The guest of honour was Alfredo Pascual, secretary of the Philippine Department of Trade and Industry.

“I am delighted to announce that the UK’s new unilateral preferences scheme, the Developing Countries Trading Scheme (DCTS), will come into effect on 19 June 2023. The DCTS will cut tariff, remove conditions and simplify trading rules. It will increase trade and strengthen the trade relationship between the UK and the Philippines. I strongly encourage businesses to take full advantage of this new scheme,” said Laure Beaufils.

Sabiha Ahmed, Trade Preferences Policy Advisor, delivered a keynote that outlined high-potential value chains and products that are set to benefit from the DCTS. Her presentation was grounded in a comprehensive study of buying habits of UK retailers and consumers, as well as valuable insights sourced from Filipino producers, financiers, trade programmes, and policymakers.

Beyond existing benefits, the Philippines' exports to the UK could also gain from an additional 150-plus tariff cuts under the DCTS. These enhanced preferences offered by DCTS promise substantial tariff preferences and facilitate access to the UK market for Philippine businesses across an extensive range of industries, the release added.

As part of the British government's strategy to grow free and fair trade with selected countries, the DCTS was designed to replace the Generalised Scheme of Preferences. It offers generous sets of trading preferences globally.

In addition to the launch, Ahmed also led information sessions for the DTI, BCCP, and other industry associations. The sessions provided insights on current trends, UK market purchasing criteria, and trade barriers, offering suggestions to unlock the Philippines' trade and investment potential. Participants also had the opportunity to learn about quality certification and customs requirements among other key trade-related information.

“The UK-DCTS, as one of the most generous trade preference schemes in the world, enables the Philippines to have continued access to enhanced preferences. We look forward to our country having access to duty-free, quota-free trade on 92 per cent of our eligible goods—or 99 per cent of our exports to the UK,” said Fred Pascual.

Fibre2Fashion News Desk (DP)