Cambodia Investment Review
The UK government has introduced a major update to its Developing Countries Trading Scheme (DCTS), aimed at making it easier for nations like Cambodia to export to Britain, while helping UK consumers access more affordable everyday goods. Announced on July 10 at a joint event by the Department for Business and Trade (DBT) and the Foreign, Commonwealth & Development Office (FCDO), the move is part of the UK’s post-Brexit strategy to simplify trade with emerging markets.
Easier Trade Rules, Wider Market Access
The upgraded DCTS includes simplified rules of origin, allowing goods produced using components from across Asia and Africa to still qualify for zero tariffs when entering the UK. This directly benefits exporters from countries such as Cambodia and Bangladesh, particularly in garments, electronics, and food products — sectors that are major contributors to their economies.
“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,” said Jenny Chapman, UK Minister for International Development.
Countries like Cambodia will continue to enjoy duty-free access to the UK market for key goods, supporting local employment and export growth.
£16 Billion in Tariff-Free Imports Since Launch
Since its launch in June 2023, the DCTS has covered 65 countries and already generated over £16 billion in UK imports with reduced or eliminated tariffs. The scheme, which replaces the EU’s Generalised Scheme of Preferences, was designed to create a simpler, more generous system for trade with developing countries.
“No country has ever lifted itself out of poverty without trading with its neighbours,” said Minister for Trade Policy Douglas Alexander. “Over recent decades, trade has been an essential ingredient in lifting hundreds of millions of people out of poverty around the globe.”
The DCTS is a core component of the UK’s Trade for Development strategy, aimed at ensuring that trade supports global development while delivering economic benefits at home.
Benefits for UK Retailers and Developing Economies
Major UK retailers such as Marks & Spencer and Primark, which source garments and household goods from suppliers in countries like Cambodia, are expected to benefit from the changes. The lower import costs could translate into more competitive pricing for UK consumers.
In addition to goods, the government plans to make it easier for developing countries to trade services, such as digital, legal, and financial services, through strengthened trade agreements. These changes aim to foster more inclusive trade relationships and support economic diversification in partner countries.
The DCTS reforms are aligned with the UK’s wider Trade Strategy under the “Plan for Change” to grow the economy, strengthen global partnerships, and support British households through international cooperation.
Stronger Global Trade Relationships
To further support exporters in developing countries, the UK will offer targeted technical assistance to help them meet UK standards and import requirements — particularly important for SMEs in Cambodia and other lower-income nations. The move underscores the UK’s shift from aid to trade-focused development engagement, particularly in Asia and Africa.
The announcement follows close consultations with UK businesses, global trade associations, and partner governments — all seeking to create mutual growth opportunities amid a shifting global trade landscape.
