Brexit has emerged as a grave concern for Bangladeshi exporters as it has already started affecting the country’s trade with the United Kingdom where the country’s exports achieved spectacular growth in last several years.Local RMG exporters said policy support including cash incentive will help them cope with the impacts anticipated to be caused by the exit of UK from the European Union (EU), the world’s largest trading block.The UK is the third biggest export destination of Bangladeshi products after the US and Germany. Bangladesh enjoys the balance of trade in its favour with the world’s fifth largest economy.According to Export Promotion Bureau (EPB) data, Bangladesh exported goods worth $3.81 billion to the UK against its imports of $276.60 million in fiscal year 2015-16, posting a trade surplus of $3.53 billion.In FY 2014-15, the country fetched $3.2 billion from exports to the UK and imported goods worth $330.20 million, registering a surplus of $2.87 billion.Bangladesh Garments Manufacturers and Exporters Association (BGMEA) President Siddiqur Rahman told daily sun that the Brexit process has started and it is affecting the trade between Bangladesh and the UK.“Bangladesh’s export market in the UK is worsening due to the influence of Brexit process. The price fall of UK currency ‘pound’ has caused losses to us and it is speculated that the situation will further worsen in near future,” he said.Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy said the Brexit process has already caused the devaluation of British pound from Tk 120 in December 2015 to Tk 98 now, impacting the profit margin of the exporters.He said Bangladesh has half a billion dollar trade with the UK and exports.“We export many products to the UK including apparel items. Besides, a significant number of Bangladeshi expatriates are living in London. So, in all respects we will have to suffer some setbacks [due to Brexit],” Murshedy added.The two business leaders sought policy support and stimulus for the exporters for sustaining the Bangladesh’s competitive edge in the post-Brexit era.Commerce Minister Tofail Ahmed has, however, said the UK would continue to offer the Generalised System of Preference (GSP) facility to Bangladesh even after completion of UK’s exit from the EU.“The exit of the UK from EU will take at least two years and Bangladesh’s export will continue to enjoy the existing trade facility to the UK market even after the Brexit,” Tofail said.The minister said: “The main reason for growing exports to the UK can be attributed to the GSP facilities provided to the developing and the least developed countries (LDC) by the EU under the Everything but Arms (EBA) initiative.“Our exports to the UK are enjoying GSP facility subject to fulfilment of rules of origin laid down in the EC’s GSP scheme which varies from product to product. As a result, the UK can import Bangladeshi product at zero duty, which contributed ultimately in increasing the volume of export from Bangladesh to the UK.”He also said the government may seek assistance from the UK for enhancing the trade-related capacity building of both the government and private sector.British Prime Minister’s Trade Envoy Rushanara Ali in a meeting with Commerce Minister Tofail Ahmed on December 21 in Dhaka said the UK’s support for Bangladesh would continue even after the implementation of Brexit.“As we look forward to a new life called Brexit, we need to make sure that relationship remains strong with countries like Bangladesh,” she said.Referring to the $2.45 billion trade and $7.5 billion investment deal with Bangladesh, Rushanara said it is showing the significance and increased confidence between the two countries in terms of trade relations.Bangladesh mainly exports woven garments, Knitwear, frozen fish, textile articles, footwear, edible vegetables, cereal, flour, starch, milk preparations and products, ceramic products, paper yarn, woven fabrics, etc to the UK while Bangladesh mainly imports machinery and mechanical appliances, cotton, cotton yarn/thread and cotton fabrics, electrical machinery and equipment, iron and steel, ships, boats and floating structures, sugar and sugar confectionery.The BGMEA chief said if the government takes strong initiative to implement the economic zones projects and ensures smooth gas and power supply to industries the exporters will be able to enhance their capacity to face the impacts created by the situations like Brexit.
