Cambodia to Benefit From New UK Trade Scheme in 2023
A summary of an article from cambodianess.com
Cambodia will start benefiting from a new trading scheme with the United Kingdom (UK) in April 2023. The scheme is called Developing Countries Trading Scheme (DCTS) and it replaces the former Generalized Scheme of Preferences (GSP). DCTS is a new type of customs preference that the UK has launched in August 2022. It aims to improve access to the UK market for developing countries by offering more generous tariff reductions, simpler and more transparent rules of origin, and fewer product exclusions than GSP. DCTS also supports sustainable growth in developing countries by linking trade preferences to environmental and human rights standards.
DCTS covers 65 countries across Africa, Asia, Oceania and the Americas. It provides duty-free, quota-free trade to least developed countries (LDCs) on everything but arms and duty-free, quota-free trade on 85% of eligible goods to most low-income countries (LICs) and lower-middle-income countries (LMICs). For Cambodia, this means that products such as textiles, garments, footwear and rice will enjoy preferential access to the UK market.
UK Ambassador to Cambodia Dominic Williams said that DCTS will support Cambodia’s economic recovery from COVID-19 and its long-term development goals. He also said that DCTS will strengthen the bilateral trade relationship between UK and Cambodia, which reached $1.2 billion in 2022.
Cambodian Commerce Minister Pan Sorasak welcomed DCTS as a positive sign of UK’s commitment to support Cambodia’s development. He also said that Cambodia will continue to diversify its export markets and products, and improve its trade facilitation and competitiveness.
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