Citing a study, the British High Commission on Tuesday said Bangladesh would potentially save £315m in tariffs annually under the new UK Developing Countries Trading Scheme (DCTS).
The DCTS replaced the UK’s old Generalized Scheme of Preferences (GSP), with effect from January 2023.
Under the new scheme, Bangladesh will be its "biggest beneficiary", the High Commission said.
"The scheme will potentially save £315m in tariffs annually on Bangladesh’s exports to the UK, the highest among all countries," the study found.
The British High Commission Dhaka launched the new study on Tuesday highlighting the benefits of the new UK DCTS for Bangladeshi exporters.
High Commissioner Sarah Cooke hosted a group of policymakers, researchers and private sector leaders to discuss the scheme at her residence.
She said: “The scheme will support Bangladesh’s smooth transition from LDC status and take the UK-Bangladesh trading relationship to greater heights.”
Bangladesh will also get duty-free access on everything but arms under the Comprehensive Preferences tier till 2029.
The country will benefit from more generous rules of origin compared to the previous GSP system.
Under the DCTS, Bangladesh will automatically move to the Enhanced Preferences tier in 2029, which will provide duty-free access to 98% of Bangladesh’s exports to the UK, including garments.
The DCTS is about boosting trade and prosperity. Retention of the scheme is based on respect for human and labour rights though compliance with international conventions.
This includes those focused on civil and political rights, anti-corruption, climate change and the environment. The UK will closely monitor these aspects.
