Phl exporters urged: Take advantage DCTS preferences

Philippine exporters did not claim preferential tariffs on £92 million (United Kingdom pound) (about P7.7 billion) worth of eligible exports to the United Kingdom under the Developing Countries Trading Scheme (DCTS) in 2025, highlighting the underuse of the scheme, according to UK trade adviser Ellie Parker.

According to Parker, about £1.8 billion worth of goods from the Philippines entered the UK in 2025, including about £299 million that was eligible for DCTS preferences.

Despite this, only £207 million in eligible exports used the scheme, leaving £92 million without the available preferential treatment, which highlights an opportunity for Philippine exporters to make greater use of the DCTS as demand for Philippine products remains strong in the UK market, Parker said.

She noted that the Philippines already produces many of the products sought by UK consumers and businesses.

Parker stressed that based on current consumer trends and sectors with further potential in the UK, she identified electronic equipment and machinery, bananas, plantains and pineapples, sustainable apparel, tuna, coconut products and spectacles among the Philippine exports with growth opportunities in the market.

The DCTS is a UK preferential trade scheme that came into force on 19 June 2023, replacing the older UK Generalized Scheme of Preferences.

The scheme cuts or removes import tariffs to help 65 developing countries, including the Philippines, grow their economies through improved access to the UK market.

The DCTS divides beneficiary countries into three tiers based on their economic status.

According to Parker, Comprehensive Preferences apply to least developed countries, including Nepal, Bangladesh and Ethiopia, providing zero percent import tariffs on 99.8 percent of product lines.

Enhanced Preferences apply to economically vulnerable low-income and lower-middle-income countries, including Pakistan, Sri Lanka and the Philippines, providing zero percent import tariffs on 92 percent of product lines.