UK trade scheme seen picking up momentum this year 

THE British Chamber of Commerce Philippines (BCCP) said the UK’s recently launched Developing Countries Trading Scheme (DCTS) could start showing results in the Philippines within the year.

“We will start to see it grow. I suspect that it (DCTS) will further boost trade between the two countries. You’ll see that as it comes to the end of this year,” BCCP Executive Director Chris Nelson said in a television interview on Monday.

The DCTS, which took effect for the Philippines on June 19, allows Philippine exporters to save around £21 million a year in tariffs with access to duty-free, quota-free trade on 92% of eligible goods under DCTS, covering 99% of Philippine exports to the UK.

“The impact cannot be yet measured since the DCTS took effect just a week ago. However, it is very clear that it will have benefits, particularly in key areas such as tuna will now go from 20% tariff to 0% tariff. We anticipate that [there] will be a boost along with other agricultural products,” Mr. Nelson said.

Mr. Nelson said the DCTS would also improve trade between the UK and Philippines, which amounted to £2.4 billion last year, up 26%.

Aside from tariff benefits, the DCTS also improves developing-country access to the UK market, resulting in £750 million worth of reduced tariffs annually for 65 beneficiary countries including the Philippines.

The trading scheme also simplifies trade rules and procedures, including those governing rules of origin.

“The DCTS reinforces the potential growth areas between the two countries. …we are looking forward to seeing DCTS further boost (trade) along with looking to get investments from the UK to key sectors into the Philippines,” Mr. Nelson said. — Revin Mikhael D. Ochave