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Daily Newsletter

17 July 2025

Daily Newsletter

17 July 2025

UK fashion firms benefit from trade rule revamp with key supplier nations

UK fashion firms including M&S and Primark have applauded a government scheme that eases tariffs on some key garment supplier nations, making it simpler to trade with the UK.

Hannah Abdulla July 17 2025

The UK Government announced upgrades to the Developing Countries Trading Scheme (DCTS), measures that will give UK consumers greater access to competitively priced imports — from fashion to food and electronics.

Upgrades include simplified rules of origin, enabling more goods from countries like Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free — even when using components from across Asia and Africa. They also ensure countries such as Bangladesh and Cambodia continue to benefit from zero tariffs on products like garments and electronics.

The trade measures will simplify imports from developing countries — helping to lower prices on everyday goods while supporting jobs and growth in some of the world’s poorest nations.

This will open up new commercial opportunities for UK businesses to build resilient supply chains, invest in emerging markets, and tap into fast-growing economies.

The DCTS allows some of the world’s poorest countries to export to the UK duty and quota-free, with over £16bn ($21.44bn) in UK imports benefiting from tariff savings since its launch in June 2023.

In addition to the DCTS changes, the UK will:

  • Offer targeted support to help exporters in developing countries access the UK market and meet import standards
  • Make it easier for partner countries to trade services — such as digital, legal, and financial services — by strengthening future trade agreements. This will create new opportunities for UK businesses to collaborate and invest in fast-growing sectors. 

The reforms will support trade with emerging markets in Asia and Africa, strengthening the UK’s global partnerships, with major fashion retailers such as M&S and Primark expected to benefit.  

Marks & Spencer PLC's director of sourcing Monique Leeuwenburgh said: This change will enable us to maintain our long-standing and trusted relationships with our key partners in Bangladesh, to deliver the same great quality clothing and home products at great value for our customers.”

Interim chief executive at Primark Eoin Tonge added: We welcome the changes to the DCTS rules of origin for garments which remove the potential cliff edge when a country graduates from Least Developed Country status.

“This will help us to maintain our existing supply chain strategy in our key sourcing markets in Asia, such as Bangladesh and Cambodia.

“We welcome the opportunity to collaborate with the government on these changes and their responsiveness to the concerns of UK retailers in this very technical area of trade policy.”

The UK Fashion & Textiles Association's CEO Adam Mansell said the rules demonstrate a genuine commitment from the government to modernise trade policy to support global economic growth.

“At a time of such uncertainty in international trade, these reforms are especially welcome.”

While Yohan Lawrence, secretary general of the Joint Apparel Association Forum (JAAF), Sri Lanka called the new rules “a game changer”.

“With the UK as our second-largest apparel market, this will boost exports, support livelihoods, and help us compete more fairly with global competitors.”

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