The decision by the UK government to replace the current UK GSP with the Developing Countries Trading Scheme (DCTS) will benefit Sri Lanka, President National Chamber of Exporters, Ravi Jayawardena said.
He also said that this decision may also lead towards opening up a new export basket to the UK market. In addition if there is a clamp down of ‘GSP plus’ to EU countries, exporters to the UK can continue under this new system as the UK is now independent. “Now over 99% of goods exported from Sri Lanka is eligible for duty-free access to the UK.’’
The British High Commissioner to Sri Lanka Sarah Hulton said that she was happy that under the DCTS’s Enhanced Preferences, Sri Lanka will benefit from duty free exports to the UK on more than 80% of products.Sri Lankan goods which benefit most from the DCTS include exports to the UK of baby clothes, t-shirts and vests, which receive a 12 percentage point reduction in import duty.
“The DCTS will remove tariffs on over 150 additional products. It will also simplify some seasonal tariffs, meaning additional and simpler access for Sri Lanka’s exports to the UK.’ 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. The new scheme will replace the UK Generalised Scheme of Preferences and will come into force in early 2023. Overall, the total trade between the UK and Sri Lanka each year is around £1.4 billion.
The DCTS replaces the UK Generalised Scheme of Preferences and simplifies rules of origin for LDCs, reduces tariffs, revises how goods graduate and simplifies requirements to access enhanced tariffs.
The DCTS retains existing powers to suspend a country on the grounds of human rights and labour rights violations and broadens these powers to include violations in relation to anti-corruption, climate change and environment conventions. (SS)
Presentation: New UK DCTS facility to benefit Sri Lanka immensely -President NCE
Source: Daily News