Brexit may hit B’desh export, say economists, exporters [ Tritiyo Matra News ]

Brexit may hit B’desh export, say economists, exporters

Local June 14, 2016

Economists and exporters are in fear that a possible exit of the United Kingdom from the European Union could put a negative impact on the Bangladeshi exports to the UK, which is the third largest export destination for Bangladesh products.
With the British people set to vote on June 23 in a referendum to decide whether Britain should leave or remain in the European Union, the latest opinion polls are suggesting a possible exit of UK from the EU.
Economists said that if the UK exits (commonly known as Brexit) the EU, Bangladesh would have to go for bilateral negotiation to avail trade facilities.
‘If the Brexit brings positive things for the economy of the UK it would not hit Bangladeshi exports, but if the exit leads to any adverse impact on the economy of UK and EU then we will be a sufferer,’ Centre for Policy Dialogue executive director Mustafizur Rahman told New Age on Monday.
He said that Bangladesh enjoys duty-free benefits for all products and flexible rules of origins for readymade garments in the EU. Due to Brexit, Bangladesh would have to need bilateral agreements to avail the benefits in the UK.
‘It is for the British people to decide whether the Brexit would be good or bad. But my personal opinion is that it will be better for Britain to be inside the EU,’ Mustafiz said.
Prime Minister of UK David Cameron had promised to hold a referendum if he won the 2015 general election, in response to growing calls from his own Conservative MPs and the UK Independence Party.
‘If any crisis take place in the economy of EU and UK due to Brexit, it will hit hard Bangladeshi export business. Otherwise I do not see any direct impact of Brexit,’ Ahsan H Mansur, the executive director of Policy Research Institute, said.
International media reported that the top economists at British universities apprehended Brexit would damage UK’s economy.
They thought that Brexit would cause uncertainty in the markets and pose other economic risks.
Md Shafiul Islam Mohiuddin, first vice president of the Federation of Bangladesh Chambers of Commerce and Industry, said that the issue was not directly related with Bangladesh but the country might have to face immediate impact of Brexit.
‘If Brexit poses negative impact on both the EU and UK economy, Bangladesh would have to suffer and if the Brexit leads positive in the economy we will be benefited,’ he said.
Mohiuddin thought that the exit of Britain from EU would not be positive as integration is important this time for the EU economy.
Bangladesh’s exports to the UK totalled US$ 3.20 billion in the financial year 2015-16 with US$ 2.90 billion coming from the readymade garments sector.
Faruque Hassan, senior vice president of Bangladesh Garment Manufacturers and Exporters Association,
said that Bangladeshi export business would be hampered as the possible Brexit would damage the economy of the EU.
He hoped that if the UK leaves EU the duty benefits for Bangladesh would remain same in the market.
According to the international media, the chances that Britain will vote to leave the European Union is growing day by day with Britain’s Independent newspaper on Monday saying 55 per cent people favoured Brexit in an opinion poll.