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The Developing Countries Trading Scheme (DCTS), a new trading facility, has been put into place by the UK. As a result, Bangladesh and 65 other poor nations would be able to export goods duty-free and at reduced rates. The UK High Commission in Dhaka provided this information in a statement on June 19.
Bangladesh is anticipated to move up the list of least-developed nations in 2026, according to the statement. Bangladesh will be allowed to export 98 percent of manufactured items, including ready-made clothing, duty-free to the UK market thanks to improvements made to DCTS, even after LDC graduation.
The UK has more lenient trade preferences than the European Union (EU). This facility was put in place following the UK's exit from the EU (Brexit).
One of the freest trading facilities in the world will be offered by DCTS. This will quicken economic development, employment growth, and trade expansion. The statement further noted that the new program "reflects the UK's commitment to further strengthen the long-term and reciprocal economic relationship between the UK and Bangladesh."
According to the UK High Commission in Dhaka, the DCTS program would bring together the world's developing nations and forge reliable partners for trade and investment in the future. The supply chain will be strengthened as a result.
DCTS makes it possible for products to be made with components from other nations while maintaining their duty-free status. Bangladesh would be able to take part in the global value chain under the new plan. utilizing raw components from 95 nations, it will be possible to ship the finished product duty-free to the UK. Certain prerequisites must be met for this.
DCTS will support Bangladesh's manufacturing capability, according to Sarah Cooke, the UK's high commissioner to Bangladesh. Additionally, it will promote resilience while enabling long-term economic expansion and access to international supply networks. Through alternative and competitive rates for consumers, DCTS will also benefit the UK.
"This announcement reaffirms our commitment to deepening economic and trade ties and a modern and mutually beneficial partnership with Bangladesh based on global standards," she continued.
According to the data, China's market share has decreased from 37% to 21%, while Bangladesh has increased its share of the UK apparel market to more than 14% over the course of the next 11 years, placing it second in the country. Clothing exports from Bangladesh totaled $4.59 billion from July to May of the current fiscal year (2022-23), or 10.77 percent of the country's overall garment exports.
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