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New measures will make it easier for developing countries to trade, supporting jobs and economic growth in the UK overseas.
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UK businesses and consumers to benefit from more competitively priced imports as part of upgrades to the Developing Countries Trading Scheme.
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Part of the UK’s Plan for Change and recently launched Trade Strategy to grow trade with markets of the future, strengthen global partnerships and deliver for British households.
British consumers and businesses are set to benefit from a package of new trade measures unveiled today (10 July), which will simplify imports from developing countries — helping to lower prices on everyday goods while supporting jobs and growth in some of the world’s poorest nations.
The measures will give UK consumers greater access to competitively priced imports — from clothes to food and electronics — as upgrades to the Developing Countries Trading Scheme (DCTS) make it easier for businesses to trade with the UK, helping to lower prices on the high street.
Upgrades include simplified rules of origin, enabling more goods from countries like Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free — even when using components from across Asia and Africa. They also ensure countries such as Bangladesh and Cambodia continue to benefit with zero tariffs on products like garments and electronics.
This will open up new commercial opportunities for UK businesses to build resilient supply chains, invest in emerging markets, and tap into fast-growing economies.
Ministers briefed British business leaders and Ambassadors from around the world on the changes at a joint Department for Business and Trade (DBT) and Foreign, Commonwealth & Development Office (FCDO) reception in London today.
Minister for International Development Jenny Chapman, said:
The world is changing. Countries in the Global South want a different relationship with the UK as a trading partner and investor, not as a donor.
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.
Minister for Trade Policy Douglas Alexander, said:
No country has ever lifted itself out of poverty without trading with its neighbours.
Over recent decades trade has been an essential ingredient in lifting hundreds of millions of people out of poverty around the globe.
The DCTS allows some of the world’s poorest countries to export to the UK duty and quota-free, with over £16 billion in UK imports benefiting from tariff savings since its launch in June 2023.
In addition to the DCTS changes, the UK will:
- offer targeted support to help exporters in developing countries access the UK market and meet import standards; and
- make it easier for partner countries to trade services — such as digital, legal, and financial services — by strengthening future trade agreements. This will create new opportunities for UK businesses to collaborate and invest in fast-growing sectors.
The reforms will support trade with emerging markets in Asia and Africa, strengthening the UK’s global partnerships, with major retailers such as M&S and Primark expected to benefit.
Director of Sourcing, Marks & Spencer PLC, Monique Leeuwenburgh said:
We are supportive of changes to the DCTS rules of origin for garments.
The ongoing collaboration between the government and retail industry has provided clarity and certainty for businesses in good time.
This change will enable us to maintain our long-standing and trusted relationships with our key partners in Bangladesh, to deliver the same great quality Clothing & Home products at great value for our customers.
Interim Chief Executive at Primark, Eoin Tonge said:
We welcome the changes to the DCTS rules of origin for garments which remove the potential cliff edge when a country graduates from Least Developed Country status.
This will help us to maintain our existing supply chain strategy in our key sourcing markets in Asia, such as Bangladesh and Cambodia.
We welcome the opportunity to collaborate with the government on these changes and their responsiveness to the concerns of UK retailers in this very technical area of trade policy.
Adam Mansell, CEO, The UK Fashion & Textiles Association said said:
UKFT welcomes these additional changes to the Rules of Origin under the DCTS, which will bring real benefits to the fashion industry in the UK and in DCTS countries.
The new rules demonstrate a genuine commitment from the government to modernise trade policy to support global economic growth.
At a time of such uncertainty in international trade, these reforms are especially welcome.
Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), Sri Lanka, said:
We warmly welcome the UK’s Trade Strategy.
The new rules allowing greater regional sourcing for garments while retaining duty-free access to the UK are a game-changer.
With the UK as our second-largest apparel market, this will boost exports, support livelihoods, and help us compete more fairly with global competitors.
The updated rules are part of the UK’s wider Trade for Development offer which aims to support economic growth in partner countries while helping UK businesses and consumers access high-quality, affordable goods.
And just last month, the UK’s Trade Strategy was published in further support of the Plan for Change to grow the economy, strengthen international ties, and deliver for households across the UK.
Notes to editors:
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Launched in 2023, following the UK’s exit from the EU, the Developing Countries Trading Scheme (DCTS) is the UK’s flagship trade preference scheme, covering 65 countries and offering reduced or zero tariffs on thousands of products.
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The UK is committed to growing services trade with developing countries, supporting digital trade and professional services.
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The announcement follows engagement with UK businesses and international partners, major importers and trade associations.
