Categories
Business

Government to cut bureaucracy for trade with developing countries Business News

Developing countries will face fewer obstacles when they trade with Britain if the Department of International Trade goes ahead with the proposed changes.

Officials seek views on plans to ease trade rules with developing countries, including the complex rules of origin requirements, which determine whether a product’s inputs qualify it for lower tariffs. Dear.

Other products, such as rice and sneakers, may also see their tariffs reduced, making them more attractive to UK-based importers.

These additional measures would make the proposed Developing Country Trading System (DCTS) more generous than the EU’s equivalent, the Generalized System of Preferences (GSP), which Britain “rolled over” after Brexit. It follows a review of how countries like Canada, the United States and Japan, as well as the EU, manage trade with poorer countries.

International Trade Secretary Liz Truss said in a statement: “Countries like Bangladesh and Vietnam have proven that it is possible to trade to improve living standards, and our new trading system for countries. developing will help others to do the same.

The program is expected to include 70 countries, a spokesperson for the Department of International Trade said. A country will be eligible because it falls under the United Nations Least Developed Country Framework or the World Bank’s Measure of Low Income and Lower Middle Income Countries.

Economic modeling suggests that the UK is unlikely to see significant near-term growth from new trade deals, although officials have argued that calculations like this cannot take into account the impact of future economic growth of the respective markets.

This is a problem with so-called static modeling that economists widely accept. However, Britain’s future new trade deals are overshadowed by its trade with the European Union.

However, there is evidence that relaxing trade rules for poorer countries can have a significant impact on their respective industries. It also makes their products more competitive for UK-based companies looking for inputs from overseas. Under the EU’s GSP system, most imports were of textiles, footwear, machinery and mechanical appliances.

The new UK consultation also comes after some developing country exporters who also have trade deals suffered significant disruption after Brexit. After a renewal deal was not reached before the end of the Brexit transition period, Ghanaian producers faced thousands of pounds in tariffs on bananas.

More about this article: Read More
Source: www.independent.co.uk
This notice was published: 2021-07-18 23:36:35

Leave a Reply

Your email address will not be published. Required fields are marked *