Preferential Tariffs for Bangladesh, Others to Continue: UK

The United Kingdom ( UK) has said that imports from 47 of the least developed countries in the world, including Bangladesh, will not face tariffs to encourage their economic growth through business and trade.

Low-income and lower-middle-income nations, according to the Department of International Trade, Overseas, Commonwealth & Development Office, will benefit from lower tariffs compared to the UK Global Tariff, reports UNB.

Any eligible countries that do not have their current trade arrangements transferred to a new deal with the UK will be covered by the trade preference scheme.

Last year, the United Kingdom imported around £ 8 billion worth of textiles and clothing goods from qualifying countries.

The government of the United Kingdom is preparing to strengthen the framework to better serve developing countries, with further information being announced in 2021.

British importers will continue to pay zero or reduced tariffs on everyday goods such as clothing and vegetables from the world’s poorest countries now the UK has left the EU, Liz Truss announced on Tuesday.

The Generalized Scheme of Preferences (GSP) of the United Kingdom will cover all the same countries currently eligible for trade preferences under the EU GSP, enabling companies to trade without interruption as they do now.

In 2019 , the United Kingdom imported nearly £ 8 billion worth of textiles and apparel goods from the EU GSP countries.

This accounted for 30% of all textile and apparel imports into the UK. "We also imported approximately £1billion-worth of vegetables from eligible countries, accounting for around 8% of all vegetable imports."

International Trade Secretary Liz Truss said free trade helps businesses to grow, boosts the economy and creates new jobs.

"We are making sure that the world’s poorest countries can continue to take advantage of the opportunities that free trade offers them by allowing them to export their products to the UK at preferential rates."

This will help developing economies set up strong industries, create jobs and help them minimize their long-term dependency on overseas aid, she said.

The scheme will also help British companies continue to trade smoothly after 'leaving the EU,' as well as give British customers continued access at competitive rates to some of their favorite goods.

The UK’s GSP will also help make products from developing countries more attractive to UK importers, enabling businesses in developing countries to grow and prosper and supporting jobs in those economies.

Foreign Secretary Dominic Raab said Global Britain is a partner of choice for developing countries. "We take a liberal approach to trade, recognising that many developing countries want to trade their way to greater prosperity."

Raab said that they value the credibility of UK corporations 'investments and their determination to be a force for good in their communities through our support for green employment, climate change mitigation and girls' education programs.

Duty-free and quota-free access will be given by the Least Developed Countries Framework for all 47 countries listed as Least Developed Countries by the UN.