Indian exports to suffer as UK withdraws GSP scheme

New Delhi, June 20 (KNN) The UK government has decided to replace the Generalised Scheme of Preferences (GSP) with a new Developing Countries Trading Scheme (DCTS) from June 19, 2023.

This decision by the UK government is likely impact Indian exporters from labour-intensive sectors, including certain textile items, leather goods, carpets, iron & steel goods and chemicals, according to experts and traders.

Global Trade Research Initiative (GTRI) said the US, European Union (EU), Australia, Japan and many other developed countries grant unilateral import duty concessions to developing countries under their GSP schemes.

“As the UK has come out of the EU, it has designed its own GSP scheme. Each country sets a product-wise threshold limit, if a country’s exports cross the limit, the GSP concessions stop. The UK withdrawing GSP concessions on labour-intensive products was expected as the two countries are negotiating a free trade agreement,” GTRI co-founder Ajay Srivastava said.

The GSP concessions were available in full to exports from Least Developed Countries (LDCs).  (KNN Bureau)