Home Business Cargo ban a threat to $3.2bn export to UK

Cargo ban a threat to $3.2bn export to UK

cargo ban a threat to $3.2bn export to uk

Business Initiative Leading Development (BUILD) has stated that the ban on direct air cargo shipment to the United Kingdom (UK) is posing a looming threat to export of Bangladesh amounting $3.2 billion to the UK.“If Bangladeshi exporters need to ship their products via other possible routes, it will increase the overall cost of doing business which will make the export market more competitive,” it said.The public private dialogue platform BUILD has also urged the government to maintain the deadline imposed by the country to help country’s businesses.The platform yesterday came up with the apprehension in a statement signed by its Chief Executive Officer Ferdous Ara.The UK government, in favor of European Union (EU), recently banned direct air cargo flights from Dhaka to UK on the plea that Bangladesh is not able to meet international security requirements.This ban announcement came on the basis of short-mid-long term requirements need for restructuring the airport security system and cargo of Bangladesh, the statement said.The inspecting authority of the UK agreed that 70% of the security requirements are fulfilled by the existing system and further more technical and non-technical issues has to be fulfilled by the time line of March 31, 2016.“RMG sector is already struggling hard to face the steep global competition, this new barrier will be an additional burden which will be very hard for the business entrepreneur to sustain,” said BUILD Chairman Asif Ibrahim in the statement.“In order to afford competitiveness, the government is requested to maintain the time line imposed by the EU which would definitely be an arduous job, at the same time on behalf of the private sector we urge upon to extend the time limit to allow Bangladesh to upgrade its standard and quality up to the international level,” he added.The UK government on March 8 imposed the temporary ban on direct air cargo shipment from Dhaka to London, citing security issues while Australia came up with the same move in December last year.Biman Bangladesh Airlines carries cargo directly to London with its four weekly passenger flights. Each flights to the UK carries an average of 25 tonnes of cargo, mostly apparels, vegetables and agricultural products.The total export and import volume between Bangladesh and UK during the year 2014-15 was US$3205.45 million and $330.72 million respectively.