Cambodia Investment Review

UK Government unveils new Developing Countries Trading Scheme in Cambodia

UK Government unveils new Developing Countries Trading Scheme in Cambodia

Cambodia Investment Review

The UK government have hosted a launch event for its new trade preferences scheme, the Developing Countries Trading Scheme (DCTS). The event, attended by senior officials from various Cambodian ministries and British Embassy representatives, aims to boost trade between Cambodia and the UK by offering generous trading preferences to support Cambodia’s transition to a middle-income country.

In an effort to grow free and fair trade with developing countries worldwide, the UK Government has launched the DCTS to replace the UK’s Generalised Scheme of Preferences (GSP). This new scheme demonstrates the UK’s commitment to fostering long-term, mutually beneficial relationships with countries like Cambodia.

Read more: Leader Talks with Dr. Deborah Elms on Cambodia’s long-term trade outlook

The UK’s trade preferences have proven to be beneficial, with trade between Cambodia and the UK reaching over $1 billion in the year to September 2022. Key products benefitting from the trade preferences include clothing, footwear, and agricultural products.

Generous trading preferences for developing countries

The DCTS offers a generous set of trading preferences for developing countries, aiming to strengthen their exports to the UK and expand their economies. Through this scheme, a wide range of businesses can benefit from zero tariffs on their products, while enabling UK businesses to access thousands of products from around the globe at lower prices. This ultimately reduces costs for UK consumers.

Read more: How Changes to International Trade is Impacting Business in Cambodia in 2023

One of the most exciting features of the new DCTS is that Cambodia will be eligible for Enhanced Preferences once it graduates from Least Developing Country (LDC) status. Enhanced Preferences provide 0% tariffs on 92% of product lines, meaning there will be no sudden loss of access to the UK market. This is expected to support Cambodia in making its economic transition to being a Middle-Income Country.

Dominic Williams, His Majesty’s Ambassador, British Embassy Phnom Penh.

Cambodian exports to the UK will continue to benefit from tariff-free access under the DCTS, along with more generous processing and content rules. The scheme will facilitate access to the UK market for Cambodian businesses across various industries, including textiles, apparel, footwear, and agricultural products.

Supports Cambodia in making its economic transition

According to Dominic Williams, His Majesty’s Ambassador, British Embassy Phnom Penh, “Our hope is that this supports Cambodia in making its economic transition to being a Middle Income Country.”

The launch event presented information on the UK’s trade preferences, research on opportunities to boost trade between Cambodia and the UK, and other key information for exporting to the UK, such as certification and customs requirements.

Secretary of State at the Ministry of Commerce, H.E. Samheng Bora.

The UK delegation consisted of participants from the Foreign, Commonwealth and Development Office, Department for Business and Trade, Department for Environment, Food and Rural Affairs, and His Majesty’s Revenue and Customs.

During the visit to Phnom Penh, the UK delegation also held engagements with Cambodian exporters and organizations, including the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC) and the Cambodia Partnership for Sustainable Agriculture (CPSA) – Grow Asia.

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