The UK Government has launched the Developing Countries Trading Scheme (DCTS) in Nigeria.
The DCTS offers one of the most generous sets of trading preferences in the world and demonstrates the UK’s commitment to building long term, mutually beneficial relationships with countries like Nigeria.
Launched in Lagos, the DCTS would come into force in the spring of 2023, replacing the UK’s Generalised Scheme of Preferences (GSP).
It is expected to benefit 65 countries, 37 of which are African, and will mean that Nigeria benefits from duty-free trade on over 9200 products.
This would be significantly more generous than both the EU’s GSP scheme and the United States’ AGOA scheme and based on current trade volumes, would mean that 99 percent of goods exports to the UK will be duty-free.
Speaking at the launch, UK Deputy British High Commissioner in Lagos, Ben Llewellyn-Jones, said, “Nigeria is one of the UK’s most important partners in Africa and the UK Government is committed to working with Nigerian businesses and exporters to boost trade between our two great nations.
“The UK’s Developing Countries Trading Scheme harnesses the power of trade to help Nigeria and other emerging economies grow and prosper.
“One major benefit of this new UK trading scheme is that it abolishes tariffs on over 3,000 everyday products that Nigeria currently exports including cocoa, cotton, plantain, flowers, fertilisers, tomatoes, frozen shrimps and sesame. The overarching aim of the new scheme is to grow free and fair trade with developing countries, boosting the economy and supporting jobs in those countries, as well as in ours.”
The work was part of a wider push by the UK to drive a free trade, pro-growth agenda across the globe, using trade to drive prosperity and help eradicate poverty.
Llewellyn-Jones also disclosed that the total trade volume between the United Kingdom and Nigeria was £5.5 billion in 2022. He said of the £5.5 billion, total UK exports to Nigeria amounted to £3.3 billion, while total UK imports from Nigeria amounted to £2.2 billion in the four quarters of 2022. He also stated that most of the commodities traded between both countries were oil and gas.
He explained that the UK was really keen on diversifying to other sectors and working with the Nigerian Export Promotion Council (NEPC) in that regard.
