TRADE volume between Tanzania and the United Kingdom (UK) is likely to grow high, after the latter established the Developing Countries Trading Scheme (DCTS).
The scheme which will come to effect from early 2023, aims to harness the power of trade to help developing countries grow and prosper. Speaking on the scheme, the High Commissioner of UK to Tanzania David Concar said that over 99 per cent of total goods exported from Tanzania will now be eligible for duty-free access to the UK.
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.
It also cuts red tape for developing countries. Effective utilization of the scheme will boost Tanzania's performance in the UK market up from the current 120th position that was recorded in the four quarters to the end of March counted for less than 0.1 per cent of total UK trade.
Available statistics by trade factsheet by the UK Department for International Trade has it that until March this year, a total trade in goods and services between the two countries accounted for 231 million pounds (equal to 635.4bn/-).
This is an increase of 2.7 per cent or six million pounds (16.5bn/-) from the four quarters to the end of March 2021. "During the period under review, it amounted to 136 million pounds (374bn/-), being an increase of 2.3 per cent or three million pounds (8.2bn/-) compared to the period ending in March 2021," read part of the document.
Total UK imports from Tanzania amounted to 95 million pounds (261.3bn/-) by March 2022, being an increase of 8.2bn/- from its export of the four quarters ending March 2021.
A list of items that Tanzania trades most to the UK includes coffee, tea, cocoa, vegetables, fruit, scientific instruments, wood and clothing.
"Of all UK imports from Tanzania in the four quarters to the end of March 2022, 21 million pounds were goods and the remaining 74 million pounds accounted for services," read part of the document, adding in the same period, UK imports of goods from Tanzania changed by less than 1 million pound (2.75bn/-) compared to the four quarters to the end of March 2021 while UK imports of services from Tanzania increased by 4.2 per cent or 3 million pounds (8.2bn/-) compared to the four quarters to the end of March 2021.
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The UK's DCTS, has been highly welcomed by the government with the Ministry of Investment, Industry and Trade, calling for Tanzanians to tap the opportunity by producing high quality goods and commodities.
Speaking to the Sunday News, Deputy Minister of Industry, Trade and Investment, Exaud Kigahe said DCTS is a right platform that will enable the Tanzanian business community to trade more with the UK for mutual benefits.
"This scheme has come at a right time as the country's international trade has been affected by the Covid-19, it's a time for our business persons to make better use of the opportunity while the government continues to facilitate their trade," he said.
Mr Kagahe said the government has been making various arrangements to improve international trade, some of the arrangements saw the signing of bilateral agreements with different countries. "It's true that most goods, commodities and services have been facing difficulties in penetrating European markets due to various laws and tariffs, we commended the UK for coming up with this scheme," noted the deputy minister.
The scheme contributes to developing countries' integration into the global economy, creating stronger trade and investment partners for the future, and strengthening supply chains.
