UK’s Developing Countries Trading Scheme is going live from June 19 giving tax free entry to 92 percent of traded goods, the British High Commission in Colombo said.
“The UK is Sri Lanka’s second largest export market and the DCTS demonstrates the UK’s continued interest in strengthening this trade relationship,” British High Commissioner Sarah Hulton said in a statement.
“We hope that Sri Lankan exporters will broaden their opportunities with the UK by making use of the wider number of products for which tariffs have been removed.”
The DCTS replaces the GSP+ trade access that was offered to Sri Lanka when the UK was part of the EU.
“Sri Lanka is well positioned to supply the UK due to increasing demand for sustainable, fair-trade, and healthier products,” the statement said.
“With more flexible rules of origin it is easier for least developed countries to trade with Sri Lanka without losing tariff-free status, increasing the potential for supply chain development.”
UK’s Trade Partnerships programme (UKTP) will also provide technical assistance to almost-ready-to-export small and medium-sized enterprises (SMEs) by the International Trade Centre (ITC).
The programme will provide trade promotion technical assistance to a selected number of Sri Lankan SMEs, preparing them to participate successfully in international trade fairs,” the statement said.
The UKTP is expected to improve th visibility of Sri Lankan producers, equip exporters with the necessary tools and knowledge, and facilitate their entry into new markets.