Latest news with #TradeforDevelopment
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
UK relaxes import rules, boosting retailers & developing nations
British consumers and businesses are set to benefit from a new package of trade measures unveiled on July 10, designed to simplify imports from developing countries and support global economic growth. The measures are part of an upgrade to the UK's Developing Countries Trading Scheme (DCTS), which aims to lower prices on everyday goods while promoting trade with some of the world's poorest nations. They will give UK consumers greater access to competitively priced imports, such as clothing. The UK has upgraded its Developing Countries Trading Scheme to simplify imports and boost trade with developing nations. The reforms include relaxed rules of origin, supporting tariff-free access for goods like garments from countries such as Bangladesh and Sri Lanka. Retailers like M&S and Primark are set to benefit from lower costs and stronger supply chains. Key reforms include simplified rules of origin, allowing more products from countries such as Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free — even when made using components from across Asia and Africa. Countries like Bangladesh and Cambodia will continue to enjoy zero tariffs on goods such as garments and electronics, British Embassy Phnom Penh said in a release. 'The world is changing. Countries in the Global South want a different relationship with the UK as a trading partner and investor, not as a donor. These new rules will make it easier for developing countries to trade more closely with the UK. This is good for their economies and for UK consumers and businesses,' said Minister for International Development Jenny Chapman. Retailers such as M&S and Primark are expected to benefit significantly, gaining improved access to competitively priced imports and more resilient supply chains. Over £16 billion (~$ 21.52 billion) worth of UK imports have already benefitted from tariff savings under the DCTS since its launch in June 2023. 'We welcome the changes to the DCTS rules of origin for garments which remove the potential cliff edge when a country graduates from Least Developed Country status. This will help us to maintain our existing supply chain strategy in our key sourcing markets in Asia, such as Bangladesh and Cambodia,' interim chief executive at Primark, Eoin Tonge said. The changes also include new support measures to help exporters in developing nations meet UK import standards, alongside efforts to ease trade in services like digital, legal, and financial sectors. These steps are part of the UK's broader 'Trade for Development' agenda and its newly published Trade Strategy, aimed at growing the economy, supporting households, and strengthening international partnerships. The announcement was made at a joint reception hosted by the Department for Business and Trade (DBT) and the Foreign, Commonwealth & Development Office (FCDO), attended by British business leaders and foreign ambassadors. 'UKFT welcomes these additional changes to the Rules of Origin under the DCTS, which will bring real benefits to the fashion industry in the UK and in DCTS countries,' added Adam Mansell, CEO, The UK Fashion & Textiles Association. 'We warmly welcome the UK's Trade Strategy. The new rules allowing greater regional sourcing for garments while retaining duty-free access to the UK are a game-changer,' stated Yohan Lawrence, secretary general of the Joint Apparel Association Forum (JAAF), Sri Lanka. Fibre2Fashion News Desk (HU)
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
UK trade reforms to boost Sri Lankan apparel exports, jobs
The UK government recently unveiled a package of reforms to simplify imports from developing countries. New measures include simplifying rules of origin, enabling more goods from countries like Sri Lanka, Nigeria and the Philippines to enter the United Kingdom tariff-free, even when using components from across Asia and Africa. Upgrades to the Developing Countries Trading Scheme (DCTS) make it easier for businesses to trade with the United Kingdom and help lower prices on the UK high street. The UK has unveiled a reforms package to simplify imports from developing nations. New measures include simplifying rules of origin, enabling more goods from countries like Sri Lanka, Nigeria and the Philippines to enter the UK tariff-free, even when using components from across Asia and Africa. For Sri Lanka, the rules of origin for the garments sector specifically will be liberalised. The changes, announced as part of the UK's wider Trade for Development offer, aim at supporting economic growth in partner countries, while helping UK businesses and consumers access high-quality, affordable goods. The announcement builds on the UK's Trade Strategy published last month. 'The most significant positive change for Sri Lanka is that the rules of origin for the garments sector specifically will be liberalised. The changes will ensure that DCTS countries can now source their materials from a wider range of nations and will give manufacturers from countries such as Sri Lanka the opportunity to take advantage of 0-per cent tariffs on garments. These changes are expected to be in place by early 2026,' an official UK government release said. 'This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60 per cent of that trade, we know manufacturers here will welcome this announcement,' British high commissioner to Sri Lanka Andrew Patrick said. 'With the Sri Lankan government's ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS,' he added. 'We are delighted that, for garments, it will now be possible to source more raw material regionally and continue to qualify for duty free export to the UK. This will be a game-changer for our trade with the UK under the DCTS,' Yohan Lawrence, secretary general of the Joint Apparel Association Forum (JAAF) in Sri Lanka , said. 'We believe that the changes will also deliver significant improvements against the objectives of the Scheme. At around $675 million in value, the UK is the second largest market for Sri Lanka Apparel, accounting for close to 15 per cent of apparel exports, while the industry supports a million livelihoods across the country,' he noted. 'This announcement will help secure employment opportunities and ensure sustainable growth in Sri Lanka by allowing us to compete on equal terms with our major competitors, and we expect exports to increase significantly when the new rules come into effect,' Lawrence added. Launched in 2023, following the United Kingdom's exit from the European Union, DCTS is the UK's flagship trade preference scheme. Covering 65 countries, it offers reduced or zero tariffs on thousands of products. In addition to the DCTS changes, the United Kingdom will continue to provide targeted support to help exporters in Sri Lanka to access the UK market and meet import standards particularly focused on agri-foods and apparel sectors. This is through programmes being delivered by the International Trade Centre (ITC) in partnership with the Sri Lanka Export Development Board. Fibre2Fashion News Desk (DS)
