UK Boosts Trade with Pakistan

Hi everyone! I hope you are all doing well. Welcome back to another blog. This article will discuss the topic in detail “UK Boosts Trade with Pakistan”. The UK’s DCTS is now in effect, benefiting Pakistan and 64 other countries. It provides tariff reductions and simplified trade terms. This scheme replaces the GSP and aims to boost business ties. Its goal is to reduce reliance on aid.

Sarah Mooney, the UK’s Trade Director for Pakistan and British Deputy High Commissioner in Karachi expressed her views on this milestone. She emphasized the pivotal role of the DCTS in strengthening economic ties between the two nations. Mooney highlighted the scheme’s potential for Pakistan to boost exports to the UK and leverage trade for sustainable development and prosperity.

On Monday, the UK Minister for International Trade, Nigel Huddleston, made a significant announcement during his visit to Bole Lemi, Ethiopia’s largest industrial business park. The scheme, officially launched by Minister Huddleston, is called the Duty-Free Tariff Scheme (DCTS).

The scheme is crucial for Pakistan as it maintains its enhanced preferences status, enabling duty-free exports to the UK for 94 percent of goods. Additionally, Pakistan will enjoy tariff removal on over 156 additional products and simplified seasonal tariffs.

The bilateral trade between the UK and Pakistan, covering both goods and services, currently stands at an impressive £4.4 billion annually. As part of the newly introduced DCTS, an estimated £120 million in tariffs are expected to be saved on exports from Pakistan to the UK. This development opens up exciting prospects for increased trade and economic growth between the two nations, fostering mutually beneficial partnerships.

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Pakistan and other DCTS countries will be supported by the UK’s Trade Centre of Excellence. The support aims to integrate them into the global trading system. The Trade Centre of Excellence provides specialized assistance. Moreover, it ensures compliance with trade standards and enables active engagement in multilateral trade forums. The assistance fosters a strong international trade presence.

Bedlinen exports from Pakistan to the UK average an impressive £250 million annually. Jeans exports from Pakistan amount to nearly £100 million. Both sectors will benefit from a substantial 12 percent reduction in import duties. That is boosting economic growth and creating a more favorable trade environment.

The DCTS covers 37 African countries, 26 countries in Asia, Oceania, and the Middle East, and two countries in the Americas. Additionally, it offers a wide range of trade opportunities with great potential. Since its announcement last year, the scheme has undergone thorough legislative processes for effective implementation. Its aim is to maximize positive impacts on global trade dynamics.


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