Enhanced tariff-free access to UK: Relief for apparel industry

THE recent announcement by the UK High Commission that Sri Lankan garment manufacturers will be allowed to source up to 100% of inputs from any country worldwide while maintaining the prevailing tariff-free access to the European state from 2026 onwards would have given a relief and comfort to the apparel industry. The proposed change is quite valuable for the industry because as at present fabrics are predominantly imported from China.

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Under the UK’s Developing Countries Trading Scheme (DCTS), Sri Lanka receives benefits as an ‘Enhanced Preference’ country. The existing rules allow tariff-free access to Sri Lankan garments if inputs are sourced from the South Asian region. It must be borne in mind that the UK-India FTA will come into effect next year; hence, the simplification of the rules of origin for the benefit of the Sri Lankan exporters would aid the garment industry to compete with the products of India within the UK market.