The UK clothing brands and retailers have applauded the new framework offering developing nations lower tariffs and simplified rules of origin requirements for exporting.
Recently, the UK has rolled out the Developing Countries Trading Scheme (DCTS) which applies to goods including clothing and food and cuts tariffs for 65 developing exporting countries.
The DCTS will cut administrative costs for businesses by reducing tariffs and bringing more countries into the scope of the most generous tariff reductions, media reported.
Moreover, it will also cut red tape for developing countries, for example by simplifying rules of origin requirements for the least developed nations.
This helps the world’s poorest countries to export to the UK and play a more active part in fast-growing global supply chains.
It also helps lower costs for UK businesses, leading to lower prices for consumers across a range of everyday products, by reducing tariffs on imports from low-income and lower-middle-income countries.
Increasing trade and decreasing tariffs is another way the government is supporting businesses and individuals with cost-of-living increases.
The clothing sector has welcomed news of the new scheme.
Adam Mansell, CEO of UKFT told the media that UKFT welcomes the recently announced DCTS which will simplify trade for Least Developed Countries (LDCs) in particular, while still offering benefits to other developing countries.
The new approach to rules of origin and cumulation for LDCs is of significant interest and should make sourcing fashion from countries such as Bangladesh, Cambodia, and Nepal much more attractive for UK brands and retailers.
He also said that it is an important step and noted that the scheme still needs to move through the legislative process and that until this is completed, the existing UK GSP rules still apply.