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Everybody wins: Post Brexit trade deal with 65 nations will cut import costs and save Brits millions

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Political Reporter

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The post Brexit changes are the most consequential since the UK exited the EU single market in 2020. Here’s everything you need to know.
The post Brexit changes are the most consequential since the UK exited the EU single market in 2020. Here’s everything you need to know.

Developing nations are set to benefit from reduced tariffs under a new post-Brexit trading scheme launched by the UK.

The Developing Countries Trading Scheme (DCTS) scheme will cut import costs for 65 countries, including 37 African nations and 26 states in Asia, Oceania and the Middle East.

It will save UK firms and consumers £770m a year on import costs on £9bn worth of goods.

International trade minister Nigel Huddleston, who launched the scheme while visiting Ethiopia’s largest industrial business park, Bole Lemi, said it was a “brilliant” initiative.

He said: “It will create opportunities for businesses around the world, supporting livelihoods, creating jobs and diversifying local and international supply chains. 

“It will also benefit UK businesses and consumers by lowering import costs on a whole range of products.”

Ethiopia, which already has a trading relationship with the UK worth £838m, pays zero tariffs on 100 per cent of goods exported to the UK, the government said.

Under the new scheme, Ethiopia and 46 other countries will be able produce goods using components from many more countries, growing their opportunities to trade with the UK.

Minister for Africa, Andrew Mitchell, said: “The UK’s new trading scheme for 65 developing countries, DCTS, shows how we can use trade to deliver development.

“It will benefit traders around the world, including small and women-owned businesses which we are supporting through the UK Trade Partnership programme.”

The DCTS removes or cuts tariffs and simplifies trading rules so more products qualify for the scheme, making it more generous than the EU scheme the UK was previously part of.

Developing nations will benefit from diversifying and and increasing exports, boosting their prosperity, while UK consumers may see prices fall on items from clothes and food to toys.

Ben Price, head of logistics at Halford, said changes to rules of origin laws were “hugely beneficial” and “incredibly helpful”.

He added: “A great example of this is camping equipment, such as tents, from developing countries in Southeast Asia.”