The United Kingdom is set to launch today in the Philippines its new preferential trading scheme for developing countries, marking the official public showcase of the trade program that will come into effect in the next two weeks.
Officials from the British Embassy in the Philippines and the Philippines’ Department of Trade and Industry will lead the local kick-off event in Makati for the Developing Countries Trading Scheme (DCTS), a trade program that will remove import tariffs for over 80 percent of Philippine goods that enter the European country.
Richard Graham, the United Kingdom Prime Minister’s trade envoy to the Association of Southeast Asian Nations (Asean), said back in April that around 150 Philippine products are included in this, all of which will see a reduction of costs by about 10 percent.
The DCTS is the UK’s version of the Generalized Scheme of Preferences Plus (GSP Plus) offered by the European Union.
Meanwhile, the British Chamber of Commerce of the Philippines (BCCP) has reiterated their support towards the launch of the DCTS, citing its benefits to the trade relations between the two countries.
BCCP Executive Director Chris Nelson said that trade between the Philippines and the UK has already reached £2.4 billion (P167.69 billion) on an annual basis.
“The launch of DCTS will give the opportunity to increase this further. The chamber, with its close partnerships, will continue to promote to its members and network in the Philippines and UK, “ Nelson said in a message sent to the Inquirer.
The public launch of the UK’s preferential trade scheme follows the signing of a partnership agreement between Manila and London late last month, which committed both parties to improve trade, investments and economic cooperation.
Aside from the DCTS, both parties had agreed to continue to address market access concerns in a bid to promote a level playing field for businesses.
The Philippines and the UK also agreed to drive investment opportunities further, particularly through the British Investment Partnerships, the European country’s international development strategy.
The UK is looking to mobilize up to £8 billion (P559.59 billion) financing each year by 2025, with investments focusing on high-impact target areas such as green infrastructure, clean technology, and climate finance.