COVID-19 Latest
World|business|September 27, 2016 / 01:34 PM
Bangladesh reportedly tops countries to face Brexit impact

AKIPRESS.COM - audit chamber-budget Bangladesh has topped the list of Commonwealth countries that would face the greatest absolute effects in terms of the extra import duty it would have to pay under possible new tax bill after Britain’s departure from the European Union, or the so-called Brexit, Dhaka Tribune reported.

The possible trade effects of Brexit on Bangladesh exports to Britain markets was forecast in research papers published by the Commonwealth Secretariat.

Bangladesh is followed by India, Pakistan, South Africa, Mauritius, Seychelles, Ghana, Sri Lanka, Kenya and Papua New Guinea.

“Bangladesh faces overwhelmingly the largest absolute hit, but proportional to current exports... the worst affected state would be Seychelles, followed by Mauritius,” the report stated.

This issue of Commonwealth Trade Hot Topics analyses “Brexit” and shows that the effects for some Commonwealth countries may be severe unless specific actions are taken to avoid this, said the report.

The U.K., the third largest single export destination for Bangladesh, is very important for Bangladesh as the exporters enjoy duty-free market access for all products under Generalized System of Preferences (GSP) under the EU trade agreements.

It is apprehended that if Brexit is executed, Bangladesh may lose duty free access and have to pay tax in exporting goods to Britain.

According to the Export Promotion Bureau (EPB), in the fiscal year 2015-16, Bangladesh earned $3.80 billion exporting goods to the U.K., of which a lions share cane from the RMG (Ready Made Garments) sector. Bangladesh exported clothing products of $3.52 billion during this time.

“If Bangladesh has to pay tax after the execution of Brexit, it will lose competitiveness in the U.K. market, which will cast shadow on the country’s industry especially the clothing sector,” Khondaker Golam Moazzem, additional research director of the Center for Policy Dialogue says.

According to the Commonwealth analysis, the major industries especially the export-oriented ones of the Commonwealth nations would have to face massive hits, if proper measures are not taken.

All rights reserved

© AKIpress News Agency - 2001-2024.

Republication of any material is prohibited without a written agreement with AKIpress News Agency.

Any citation must be accompanied by a hyperlink to akipress.com.

Our address:

299/5 Chingiz Aitmatov Prosp., Bishkek, the Kyrgyz Republic

e-mail: english@akipress.org, akipressenglish@gmail.com;

Follow us:

Log in


Forgot your password? - recover

Not registered yet? - sign-up

Sign-up

I have an account - log in

Password recovery

I have an account - log in