The Department of Trade and Industry (DTI) is planning to launch within the week, a handbook that will help improve access to the United Kingdom (UK) market.
“”So we’re launching a guidebook on how to access the UK market, leveraging on the DCTS (Developing Countries Trading Scheme),” DTI Export Marketing Bureau Director Bianca Sykimte said during the recent UK-Southeast Asia Tech Week in Manila.
The DCTS reduces tariffs, removes conditions and simplifies trading rules for 65 developing countries.
On June 7, 2023, the UK government launched the DCTS in Manila, allowing Philippine exports to the UK to benefit from significant tariff reductions.
Sykimte said the DTI is pushing for improved utilization rate under the UK DCTS.
She said the utilization rate is currently at 68 percent.
This is slightly lower than the over 70 percent utilization rate under the EU Generalized System of Preferences.
“So we’re hoping the same for the UK DCTS,” she added.
Sykimte said the DTI also recently had discussions with the UK government on relaxing some of the rules for sectors that have underutilized utilization, specifically for garments.
“The UK has also had several consultations with other developing countries, availing of DCTS. And one of the focus sectors is garments, because that’s the low utilization,” she said.
“Based on our discussions last week, they’re cautiously optimistic that they will relax. It’s just that they’re not yet in liberty to disclose.”
Sykimte said these initiatives are part of the efforts under the Joint Economic and Trade Committee (JETCO).
The Philippines and the UK recently held its inaugural JETCO in London on March 17 to increase the current bilateral trade of GBP2.8 billion (around PHP207.87 million).
The UK government earlier disclosed that during the inaugural JETCO, DTI Undersecretary Allan Gepty and UK Minister for Trade Policy and Economic Security Douglas Alexander agreed to push for closer collaboration to boost economic ties, especially in infrastructure, renewable energy, agriculture and technology.
Data from the UK government showed that as of the third quarter of 2024, the Philippines was the UK’s 60th largest trading partner accounting for 0.2 percent of total UK trade.
Total trade in goods and services between the UK and the Philippines in the same period was £2.8 billion. (PNA)
