Islamabad June 21 2023: Federal Minister for Commerce Syed Naveed Qamar has said the new scheme had replaced the Generalized Scheme of Preferences (GSP) and will help drive business between the UK and Pakistan, reducing the need for aid.
According to a press release issued here on Tuesday, Pakistan retains enhanced preferences status and will continue to benefit from duty-free exports to the UK on 94% of goods exported.
The United Kingdom’s Developing Countries Trading Scheme (DCTS) has now entered into effect, providing tariff reductions and simpler terms of trade to Pakistan. It will also remove tariffs on over 156 additional products, and simplify some seasonal tariffs, it added.
Some of the specific goods which benefit most from the DCTS in Pakistan include over £ 250 million ($320 million) of average annual exports to the UK of bedlinen and almost £100 million of jeans which will each receive a 12% reduction in import duty.
The DCTS covers 37 countries in Africa and 26 in Asia. Oceania. Middle East and 2 in the Americas.
The scheme was announced last year, and legislation has since been finalised to bring it into force, Federal Minister of Commerce Syed Naveed Qamar’s visit to the UK this month was vital to bring this into effect for Pakistan.
The total volume of trade in goods and services between the UK and Pakistan each year currently stands at £4.4 billion ($5.63 billion). It is expected that £120 million ($153.6 million) in tariffs will be saved on exports to the UK under the scheme.
The international trading system through the UK’s Trade Centre of Excellence, will provide specialist support to fully participate in the global trading system. This may include support for meeting trade standards and participating in multilateral trade forums.
“This important new scheme will further strengthen the economic ties between our two great countries, helping Pakistan to boost its exports to the UK and benefit from the power of trade for development”, said Syed Naveed Qamar.
