Tanzania set to exploit UK’s new trade scheme

TANZANIA is well prepared to explore business and trade opportunities to be brought by the Developing Countries Trading Scheme (DCTS) bloc, whose implementation will commence next year.

The scheme aims at cutting tariffs on goods from developing countries so that they be in a position of increasing their exports to the United Kingdom (UK).

Also it will cut administrative costs for businesses by reducing more tariffs and bringing more countries in scope of the most generous tariff reductions.

Speaking during the launch of the second UK- Tanzania business forum yesterday, Acting Permanent Secretary in the Ministry of Investment, Industry and Trade Ally Gugu, said the government will continue to ensure Tanzanians business community produce quality products for export.

“We shall make better use of this opportunity as it will help to boost trade volume between our two great nations,” he said, adding that the UK is one of the top trade partners with Tanzania.

Statistics from the UK Department for International Trade show that total trade in goods and services between the UK and Tanzania was 227 million UK pounds (634.9bn/-) in the four quarters to the end of the second Quarter of the year 2022.

This is equal to an increase of 5.6 per cent or 12 million UK pounds from the four quarters to the end of quarter two of the year 2021.

Total UK exports to Tanzania amounted to 199 million UK pounds (556.6bn/-) in the four quarters to the end of quarter 2 of  the  year 2022, being an increase of 32.7 per cent compared to the four quarters to the end of second quarter of last year.

Moreover, total UK imports from Tanzania amounted to 28 million UK pounds (78.3bn/-) in the four quarters to the end of quarter two of the year 2022.

This is a decrease of 56.9 per cent compared to the four quarters to the end of quarter two of 2021.

Speaking on the business forum, Mr Gugu asked members of the business community to make better use of the platform in boosting their business.

Present in the forum, the UK High Commissioner to Tanzania David Concar asked Tanzania business personnel to make better use of the DCTS for speedy development.

“The scheme will apply zero and reduced tariffs to hundreds of additional products imported from 65 developing countries worldwide and reduce origin requirements and increase access to the scheme for DCTS countries,” he said.

According to him, the scheme will cover goods produced in Tanzania using components from other countries. The scheme also cuts administrative costs for businesses by reducing more tariffs and bringing more countries in scope of the most generous tariff reductions.

He noted that 99 per cent of total goods exported from Tanzania will now be eligible for duty-free access to the UK.

For his part, the UK Prime Minister’s Trade Envoy to Tanzania Lord Walney commended Tanzania for its initiatives on supporting investors by providing all the needed support.

“Tanzania has made great progress in supporting investors and businesses like those here today contributing to Tanzania’s economic potential,” he said.

Over 30 participants from private and public institutions in the UK are attending the forum that is also scheduled to work on challenges facing bilateral trade.

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