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Bangladesh to retain duty-free exports benefit under UK’s new scheme

Black_cats

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Published on 03:23 PM, August 17, 2022

Bangladesh to retain duty-free exports benefit under UK’s new scheme​


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Star Business Report

Bangladesh will continue to benefit from duty-free exports to the United Kingdom under its new trading scheme, which will replace the country's Generalised Scheme of Preferences (GSP).

The UK is going to launch the scheme titled "Developing Countries Trading Scheme (DCTS)" in early 2023.

The scheme will provide tariff reductions and simpler terms of trade to 65 developing countries, including Bangladesh, according to a press release of the British High Commission in Dhaka.

"The DCTS will be one of the most generous sets of trading preferences of any country in the world, helping to grow trade, boost jobs and drive economic growth."

"This new scheme demonstrates the UK's commitment to strengthening a long-term and mutually beneficial economic relationship with Bangladesh."

The DCTS will provide a clearer and streamlined trading arrangement for Bangladesh thanks to simplified and more flexible rules of origin, making it easier to produce goods using components from other countries without losing duty-free status, the UK embassy said.

British High Commissioner to Bangladesh Robert Chatterton Dickson said the DCTS will harness the power of trade and the private sector to enable developing countries like Bangladesh to grow and prosper.

The UK is one of Bangladesh's biggest export markets, with an annual trade partnership worth over $4 billion.

Even after Bangladesh graduates from the least-developed country status in 2026, it will retain duty-free access to the UK for 98 per cent of its exports, including ready-made garments, Dickson said.

"We look forward to increasing trade in both directions as an increasingly prosperous Bangladesh buys more high-quality UK goods and services."

The DCTS contributes to developing countries' integration into the global economy, creating stronger trade and investment partners for the future.

It also reflects the UK's commitments to human rights and labour standards, incorporating powers to alter trade preferences in the event of serious human or labour rights violations.

The DCTS will also support the UK's obligation on anti-corruption, climate change and environment conventions, said the press release.
 

UKBengali

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As a duel nationality of both countries I support this whole heartedly.


I am not sure on the wisdom of carrying on with duty-free access after BD graduates from LDC status in 2026.

BD exports with 13% tariffs on garments into the US market since 2013 are showing massive increases, with BD moving up the value chain nicely.

While quota and tariff free access were required when BD was developing its economy, it is getting to the stage where it is more harmful than beneficial now as it prevents automation and moving up the value chain.
 

bluesky

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I am not sure on the wisdom of carrying on with duty-free access after BD graduates from LDC status in 2026.
Duty-free access because BD will be a developing country on paper only and by making fictitious GDP figures all through the past few years. BD will remain an LDC in reality.

UK politicians know our reality very well.
 
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Nergal

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Some BAL characters are in such deep delusion, that they aren't ready to accept that duty free export is a privilege for Bangladesh!
 

BananaRepublicUK

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I am not sure on the wisdom of carrying on with duty-free access after BD graduates from LDC status in 2026.

BD exports with 13% tariffs on garments into the US market since 2013 are showing massive increases, with BD moving up the value chain nicely.

While quota and tariff free access were required when BD was developing its economy, it is getting to the stage where it is more harmful than beneficial now as it prevents automation and moving up the value chain.

Plus, keeps BD open to blackmail.

US has lost all leverage over BD because they removed the goodies.
 

UKBengali

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Plus, keeps BD open to blackmail.

US has lost all leverage over BD because they removed the goodies.


BD has already surpassed 1 billion US dollars in exports to USA in a single month this year.

I have no idea why Hasina is still wanting to keep any quota and tariff-free access after 2026. She mentioned something about the after-effects of corona but this is not a good enough reason as BD economy needs to stand on it's own two feet now and compete solely in terms of quality and price.

The country is going to be held back in terms of innovation the longer it has any special privileges.
 

BananaRepublicUK

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Some BAL characters are in such deep delusion, that they aren't ready to accept that duty free export is a privilege for Bangladesh!

That “privilege” comes with huge cost.

West doesn’t do zakat.

Everything they do is for pure self interest.

I agree with @UKBengali.

Get rid of the bloody GSP now!

WE ARE DOING FINE WITHOUT IT IN USA. And will do fine without it in EU.
 

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