Lao food and drink producers are preparing to export their products tariff-free to the United Kingdom (UK) under the UK’s Developing Countries Trading Scheme (DCTS). This initiative provides Lao exporters with access to the UK market without the burden of import tariffs, opening up new growth opportunities.
On 19 September, the UK’s Minister for Trade Policy and Economic Security, Douglas Alexander, alongside with the British Ambassador to Laos, Mel Barlow, met with Laotian coffee producers and Yoyo Laos Sauce representatives to discuss how the DTCS will support their expansion into the UK market.
In the coming weeks, Yoyo Laos Sauce is set to make its first export to the UK under the scheme. Additionally, Lao coffee producers are making significant efforts to enter the UK market. Companies such as Miracle Lao and Comma Coffee are among ten Lao coffee producers benefiting from the UK’s investment partnerships program, which provides critical support in branding, marketing, and international business connections.
The UK’s USD 265,000 (GBP 200,000) investment program has helped Lao producers travel to Manchester to meet potential buyers and establish long-term trade partnerships. The program also offers training and guidance, helping them prepare for sustained success in international markets.
Under the DCTS, Laos enjoys zero percent import tariffs on all products, except arms and ammunition. This exemption is expected to save Laos an estimated USD 1,7 million (GBP 1.3 million) in tariffs annually, further boosting the USD 147 million (GBP 111 million) trade relationship between the two countries.
Minister Alexander emphasized the importance of trade in supporting economic development and growth. By facilitating duty-free exports from Laos and other developing nations, the DCTS helps boost local industries, raise incomes, and create jobs, while also providing UK consumers with a wider variety of products.
The DCTS is widely recognized as one of the most generous and straightforward trading preference schemes started last year, with over 90 percent of Lao exports to the UK already eligible for duty-free access. Moreover, the scheme will further enhance mutual prosperity by encouraging more ASEAN exports to the UK, with over 70 percent of ASEAN imports entering the UK duty-free during its first year.
