B’desh frozen fish exporters already feeling Brexit pinch

The British move to leave EU has already hit Bangladesh’s frozen fish sector with export consignments worth nearly Tk 100 crore getting stuck as UK buyers asked not to make any shipment following Brexit referendum.
Experts and exporters feared that country’s frozen fish sector might be the worst victim of Brexit as most of the Europe-bound export consignments go to their destinations via London.
Exporters said that the United Kingdom was the highest importer of Bangladesh’s frozen fish and following the Brexit the UK buyers have already asked the exporters to hold delivery.
‘We are in deep concern over the situation as UK buyers have already asked exporters not to make any shipment and the export consignments worth nearly Tk 100 crore got stuck due to Brexit,’ SM Amzad Hossain, president of Bangladesh Frozen Foods Exporters Association told New Age on Tuesday.
In the EU referendum the British people on June 23 decided to leave the European Union. Following the result of Brexit vote a turmoil situation took place in the UK economy and politics.
Due to Brexit the British pound fell by 8 per cent and the UK buyers are observing the situation whether they should import shrimps at this moment, Amzad said.
He said that the Brexit would not only hamper exports to UK but also to the EU countries as a number of countries import shrimps through London.
Amzad said that Bangladesh’s shrimps sector would have to face a severe blow in the aftermath of Brexit and the shrimp exporters have requested the government to work out an action plan to face the immediate crisis.
‘The exit of UK from the EU would pose a long-term impact on exports and we have to rethink about the duty-free facility and the possible barriers to export goods to other countries via UK,’ he said.
The BFFEA also requested commercial councillors in the EU countries to remain vigilant over the situation so that government and exporters can take timely decisions to protect business, Amzad said.
News agency AFP, quoting Anastasia Alieva, head of fresh food research at the Euromonitor consultancy, reported on Monday that rising food prices in UK would curb consumers’ spending power.
‘Overall, the weakness of the pound is likely to generate price increases for many food products which will have a negative impact on disposable income,’ Alieva wrote in a note.
According to the Export Promotion Bureau, frozen fish export to the UK from Bangladesh in the first 11 months of the current financial year 2015-16 amounted worth US$ 95.41 million.
Belgium was the second highest export destination of frozen fish in the July-May period of the FY16 with US$ 62.72 million earnings, data showed.
‘Bangladesh’s shrimp sector might be the worst victim of Brexit as the export consignments to most of the EU countries go through Britain,’ Policy Research Institute executive director Ahsan H Mansur told New Age.
He said that in view of devaluation of British pound as well as Euro in the aftermath of Brexit, the consumption of shrimps might decrease in both UK and EU.
He suggested the government and exporters to find out alternative ways to set up direct communications with EU countries.

News Courtesy: www.newagebd.net