Westminster Policy News & Legislative Analysis

UK–Madagascar trade: DCTS, UK‑ESA EPA and 2026 cumulation

The UK Government has set out a two‑track trade offer for Madagascar built on the Developing Countries Trading Scheme (DCTS) and the UK–Eastern and Southern Africa Economic Partnership Agreement (UK‑ESA EPA). A March 2026 GOV.UK update confirms that the approach combines extensive tariff preferences with simpler origin rules to help Malagasy firms integrate into UK‑facing supply chains.

The DCTS, launched in June 2023, is presented by the UK Government as one of the most far‑reaching preference regimes globally. Madagascar benefits from the scheme’s Comprehensive Preferences tier, delivering duty‑free access on around 99% of tariff lines and removing nuisance and seasonal tariffs, while maintaining protections for sensitive Malagasy industries.

The parallel UK‑ESA EPA remains in force and provides a contract‑based route grounded in a trade agreement text. Exporters may use either framework for shipments to the UK, selecting the option that best fits documentation requirements, supply‑chain design, product‑specific origin rules and any sector‑specific advantages.

Across both routes, rules of origin have been simplified and made more generous. Key features include higher permitted non‑originating content thresholds of up to 75% for some products, alternative product‑specific rules where relevant, and broad cumulation options with more than 90 developing countries, as set out in official guidance.

From January 2026, regional cumulation has been widened for Madagascar under the UK offer. Inputs originating in any African country that has an association agreement with the UK may be counted towards Malagasy origin for UK imports, provided other origin conditions are met and records are retained. Traders are directed to the UK’s list of trade agreements in effect for the current roster of eligible partners.

To claim a preference, businesses should classify goods accurately using the UK tariff, confirm sufficient processing to confer origin, and hold evidence such as supplier declarations and proofs of origin. Compliance with UK regulatory requirements-customs procedures, sanitary and phytosanitary rules, food safety and labelling-remains mandatory at the border.

Choosing between DCTS and the UK‑ESA EPA is a technical assessment. Firms should compare product‑specific rules of origin and cumulation options for each HS code, check what paperwork and attestations they can reliably provide, and test whether planned regional sourcing qualifies under thresholds available in each framework.

The UK–Madagascar trading relationship is framed as predictable for exporters. The UK Government highlights access to an economy of roughly £3 trillion and a market of around 69 million consumers, underpinned by published tariff schedules and accessible origin rules.

Official materials referenced in the update include a short guide to finding UK buyers and partners, a two‑page note on how to claim DCTS preferences and rules of origin, and a 24‑page explainer on how the scheme works. For market access and B2B support, Growth Gateway offers business advice, market insights, connections and routes to finance. Digital Pathways is flagged for linking Malagasy distributors, agents and wholesalers with UK suppliers.

Operational queries can be directed to the UK Embassy in Antananarivo via British.EmbassyAntananarivo@fcdo.gov.uk using the subject line ‘TRADE ENQUIRY’. Officials also signpost resources on trading with developing nations, importing goods into the UK and the UK’s online trade tariff for commodity classification.

Policy Wire analysis: The January 2026 cumulation change matters where inputs are routinely sourced across borders within Africa-such as textiles and apparel assembly, processed foods and light manufacturing-because qualifying third‑country inputs can now count towards Malagasy origin for the UK. Companies should update supplier declarations, bills of materials and internal origin‑tracking to reflect the new options.