By Becky Usman

The United Kingdom (UK) has announced significant changes to its trading rules, slashing tariffs on products from Nigeria and other developing nations. This move is expected to save businesses and consumers substantial amounts of money annually.

In a statement released by the British High Commission in Abuja on Monday, it was revealed that the UK’s new post-Brexit Developing Countries Trading Scheme (DCTS) has come into effect. This scheme encompasses 65 countries, including Nigeria, and aims to simplify trading regulations, reduce tariffs, and expand the range of products eligible for duty-free access. The DCTS is more favorable than the previous EU scheme the UK was a part of, benefiting developing countries by facilitating diversification, increasing exports, and stimulating economic growth.

Under the DCTS, over 99 percent of goods exported from Nigeria will automatically qualify for duty-free access to the UK market. Additionally, Nigeria will receive enhanced preferential access for nearly 3,000 products. For instance, tariffs on cocoa paste will be reduced by 4.5 percent, fruit juices by 26.5 percent, and prepared tomatoes by 14 percent.

Nigel Huddleston, the UK Minister for International Trade, launched the scheme during a visit to Bole Lemi, Ethiopia’s largest industrial business park. Minister Huddleston expressed his enthusiasm for the DCTS, highlighting the opportunities it creates for businesses worldwide and emphasizing the positive impact on job creation and supply chain diversification. Import costs for various products are expected to decrease, benefiting UK businesses and consumers.

Andrew Mitchell, Minister for Development and Africa at the Foreign, Commonwealth and Development Office, emphasized the developmental aspects of the DCTS, showcasing how trade can drive progress. He highlighted the benefits the scheme will bring to traders globally, including support for women-owned businesses through the UK Trade Partnership program.

The DCTS is advantageous not only for developing countries but also for British companies engaged in trade with these nations, particularly in everyday products such as bicycles and camping gear.

Commenting on the launch, Ben Llewellyn-Jones, the UK Deputy British High Commissioner in Lagos, emphasized the importance of Nigeria as a key partner in Africa. He stated that the UK government is committed to fostering trade between the two nations, and the DCTS serves as a means to boost economic growth and prosperity in Nigeria and other emerging economies. Llewellyn-Jones highlighted a major benefit of the scheme, which is the elimination of tariffs on over 3,000 everyday products currently exported from Nigeria, including cocoa, cotton, plantain, flowers, fertilizers, tomatoes, frozen shrimps, and sesame. The overarching goal of the scheme is to promote trade with developing countries, invigorate their economies, and support job creation both domestically and internationally.