The United Kingdom (UK) has announced a significant overhaul of its trading rules and tariff system to benefit businesses and consumers in Nigeria and other developing countries. The announcement came with the launch of the UK’s new post-Brexit Developing Countries Trading Scheme (DCTS), which covers 65 countries, including Nigeria.
Under the DCTS, tariffs will be removed or reduced, and trading rules simplified to allow more products to qualify for the scheme. This makes the UK scheme more generous than the European Union (EU) scheme that the UK was previously a member of. The initiative aims to promote diversification and increased exports in developing countries, driving prosperity and job creation. As trade with the UK grows under the scheme, businesses could save millions of pounds in import costs over time, according to a statement by the British High Commission in Abuja.
For Nigeria, over 99 percent of exported goods will automatically be eligible for duty-free access to the UK. Nigeria will also receive enhanced preferential access for nearly 3,000 products, including the removal of tariffs on cocoa paste (4.5 percent), fruit juices (26.5 percent), and prepared tomatoes (14 percent).
The UK’s Minister for International Trade, Nigel Huddleston, officially launched the scheme during a visit to Ethiopia’s largest industrial business park, Bole Lemi. Minister Huddleston praised the scheme, highlighting its potential to create opportunities for businesses worldwide, support livelihoods, generate employment, and diversify local and international supply chains. The scheme will also benefit UK businesses and consumers by lowering import costs for a wide range of products.
Andrew Mitchell, the UK’s Minister for Development and Africa, emphasized the developmental impact of the DCTS, showcasing how trade can drive development. The scheme aims to benefit traders globally, including women-owned businesses, which receive support through the UK Trade Partnership program.
The DCTS will not only benefit businesses in Nigeria but also provide opportunities for trade growth between the UK and Nigeria. It will abolish tariffs on more than 3,000 everyday products that Nigeria currently exports, including cocoa, cotton, plantain, flowers, fertilizers, tomatoes, frozen shrimps, and sesame. The UK aims to foster economic growth and job creation in both countries through this new trading scheme.
Ben Llewellyn-Jones, UK’s Deputy British High Commissioner in Lagos, highlighted the importance of Nigeria as a key partner in Africa and expressed the UK government’s commitment to working with Nigerian businesses and exporters to boost trade between the two nations. He emphasized that the DCTS harnesses the power of trade to support the growth and prosperity of Nigeria and other emerging economies. The scheme aims to strengthen the economy and create job opportunities in both the UK and developing countries.
The UK’s introduction of the new trading scheme is expected to have a positive impact on trade relations between Nigeria and the UK, fostering economic growth and mutual benefits for both countries.
