UK to continue zero-duty benefits for Bangladesh post Brexit

UK to continue zero-duty benefits for Bangladesh post Brexit

Even after Brexit, the UK will continue to provide zero-duty benefit on import of goods from Bangladesh and 47 other least developed countries. After the Brexit vote Bangladesh’s exports, especially garment items, to the UK began to slide. Garments, which account for more than 80 per cent of Bangladesh’s total exports to the UK, fell by nearly six per cent with export earnings falling in the last 11 months of the outgoing fiscal year.

Year-on-year growth of Bangladesh’s garment exports to the UK has hovered around 15 per cent over the last few years. It is likely to see negative growth in fiscal 2016-17. The UK is a major export destination, as Bangladesh has been enjoying duty privilege under the EU's Everything But Arms scheme and also because a large number of non-resident Bangladeshis live in the UK.
 

Bangladesh exported goods worth 3.26 billion dollars to the UK, in the last 11 months of the outgoing fiscal year compared to 3.44 billion dollars in the corresponding period of the previous fiscal year. Bangladesh is watching if Britain and the EU sign any bilateral free trade agreements with countries competing with Bangladesh. Bangladesh would face tough competition, if the UK and the EU give the same benefit to those countries.

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