Uncertainties should not overshadow post-Brexit trade

CLOTHING suppliers, who benefit from duty-free access to the UK might suffer as a result of Brexit unless special terms of access are negotiated, as per a report carried out by The New Nation on Tuesday. It said suppliers in major clothing exporting countries, including Bangladesh, could be excluded from preferential access to the UK market now governed by EU laws when Britain leaves the European Union. It is high time in our view to prepare for new negotiation with the British government as soon as possible to avoid any risk.

UK will start the exit process early next year and it will take more or less two years as per the law mentioned in Article 50 of EU. The issue is very critical and the government should properly pay heed to this to keep unhurt our garments export to the country. In 2015, the UK was the EU’s second largest clothing import market in terms of value after Germany, with a 17.7 percent share of total imports

Bangladesh earned $28.09 billion from apparel exports in the 2015-16 financial growing by around 10.21 percent from the previous year. Thus, Britain’s exit from the EU may hurt Bangladesh’s exports, especially in the apparel sector. A weak pound may lead UK buyers of Bangladeshi garments for price cut pressure and also reduce buying to some extent. These are some dangers Bangladesh may have to face in post Brexit period to force producers here to readjust production for British market.

Since the UK is the third-largest single export destination for Bangladesh and it is very important for us to enjoy duty-free market access for all products under the Generalised System of Preferences (GSP). That is why it has become a big question as to whether it will be able to continue to enjoy the same trade facilities or not.

But of course it needs not be that way. Chief of the Delegation of the United Kingdom (UK) Mathews on the sidelines of the UNCTAD 14 conference held in July this year commented that Britain’s exit from the European Union (EU) would not impact on UK-Bangladesh trade and other LDCs. He said that Bangladesh is an important business partner of UK. So bilateral relations, trade and investment would remain as usual in future like the EU era.

In our view, it is indeed a very encouraging comment and also quite usual in the light of the historic relation of Bangladesh with Britain and because of the huge expatriate Bangladeshi community living in the country and contributing to its socio-economic development. We look forward that Britain’s exit from the EU will be smooth and end in dignity while having the least dislocation in trade relation with existing trading partners all over the world.