The latest United Kingdom (UK) trade reforms have opened export opportunities for local exports under the Developing Countries Trading Scheme (DCTS), which enables member countries to export to the UK with low or zero tariffs.
Under the upgraded DCTS, Malawian exporters and entrepreneurs will benefit from a new package of trade reforms designed to simplify access to the UK market and strengthen economic ties between the UK and developing countries.
In a statement on Monday, UK Minister for Development Jenny Chapman said the upgrades include simplified rules of origin, which will enable all DCTS countries, including those further up the value chain to source inputs on finished goods from across the African continent, while ensuring that goods can continue to enter the UK tariff-free.
She said: “These new rules will make it easier for developing countries to trade more closely with the UK.
“This is good for their economies and for UK consumers and businesses.”
UK Minister for Trade Policy Douglas Alexander is quoted in the statement as having said that the upgrade will provide targeted support to help African exporters meet UK standards and navigate customs procedures, among others.
In an interview, Common Market for Eastern and Southern Africa Business Council president James Chimwaza described the development as an opportunity for the region to increase trading with the UK after the country exited from the European Union.
“For the region to effectively tap on this UK market, there are a number of critical areas that need to be addressed, including strengthening cooperatives that are meant to increase production, improve value addition and convince financial institutions for funding,” he said.
National Statistical Office data shows that since 2020, Malawi’s terms of trade with UK has been dropping by 3.62 percent per annum and has remained in negative.
Launched in 2023, the DCTS is the UK’s flagship trade preference scheme, covering 65 countries and offering reduced or zero tariffs on thousands of products.
