Photo: Collected-
Metropolis Report-
With streamlined regulations and tariff reductions, the UK’s Developing Countries Trading Scheme (DCTS) will enable more items from 65 developing nations, including Bangladesh, to enter the UK market.
98% of Bangladesh’s exports, including ready-made clothing, will continue to be duty-free, and the nation will be able to join global value chains that use raw materials from 95 different nations.
The program facilitates the production of items using components from other nations without losing their duty-free status, while also promoting free and fair trade, human rights, and good governance.
With the announcement, exporters are optimistic and anticipate an increase in their exports to the UK market. The UK has proposed a plan to loosen the requirements for ratifying 32 international agreements for poor nations and to lower the value addition requirements.
Exporters of clothing praised the move, but trade analysts issued a warning that human rights breaches might still be significant. According to a former foreign secretary, it is pointless to determine whether Bangladesh should comply with the trade restrictions if it wishes to reap the benefits.
To encourage increased trade with developing nations, the UK intends to slacken import regulations and introduce the Developing Countries Trading Scheme.
By 2030, the plan might raise Bangladesh’s exports of finished clothing to the UK by a factor of 2.5, reaching $11 billion.
According to data, Bangladesh is currently the second-largest supplier of garments to the UK, with its market share doubling to over 14% in the 11 years leading up to 2021.
