facing challenges from Brexit

‘Govt plans trade renegotiation’

The government would soon plan trade renegotiations with the United Kingdom (UK) to tackle the challenges that the country would face following the Brexit eferendum, Commerce Minister Tofail Ahmed said yesterday, reports BSS. The UK is leaving the European Union (EU) as Britons on Friday voted to exit the EU, sending a global warning of severe impact on the countries' trade and economy particularly those are closely associated with the Euro block. Like many other countries, economists and analysts here in Dhaka also expressed apprehension about probable negative impact of UK’s exit from the EU. Among those are losing duty benefits on Bangladesh’s export to UK, decline in remittance inflow and volatility in the foreign exchange market.
Bangladesh is now enjoying 12.5 percent duty benefit on its export to EU countries including the UK. But, the duty benefit would discontinue for UK once the country departs from EU. Expressing similar worry, the commerce minister said like many other countries Bangladesh would also go through a major turbulence in the coming days until a fruitful renegotiation is done with the UK authorities for continuing duty benefit on its export to that country. Terming the outcome of Brexit referendum unexpected, Tofail said the government would identify the areas where it could start renegotiation for better trade benefits. “We, however, would have enough time for the renegotiation,” the minister said, adding that the country could hopefully avert any big negative impact of Brexit. According to experts, the UK would require at least two years to sort out all the formalities for making the exit from the 28-country EU bloc. UK is the third largest export destination for Bangladesh, with the country netting more than $3 billion from shipping various goods including readymade garments to that country. According to Export Promotion Bureau (EPB), Bangladesh major exports to EU include apparels, vegetables, fruits and agro-products.

facing challenges from Brexit

Govt plans trade renegotiation

The government would soon plan trade renegotiations with the United Kingdom (UK) to tackle the challenges that the country would face following the Brexit eferendum, Commerce Minister Tofail Ahmed said yesterday, reports BSS. The UK is leaving the European Union (EU) as Britons on Friday voted to exit the EU, sending a global warning of severe impact on the countries trade and economy particularly those are closely associated with the Euro block. Like many other countries, economists and analysts here in Dhaka also expressed apprehension about probable negative impact of UKs exit from the EU. Among those are losing duty benefits on Bangladeshs export to UK, decline in remittance inflow and volatility in the foreign exchange market. Bangladesh is now enjoying 12.5 percent duty benefit on its export to EU countries including the UK. But, the duty benefit would discontinue for UK once the country departs from EU. Expressing similar worry, the commerce minister said like many other countries Bangladesh would also go through a major turbulence in the coming days until a fruitful renegotiation is done with the UK authorities for continuing duty benefit on its export to that country. Terming the outcome of Brexit referendum unexpected, Tofail said the government would identify the areas where it could start renegotiation for better trade benefits. We, however, would have enough time for the renegotiation, the minister said, adding that the country could hopefully avert any big negative impact of Brexit. According to experts, the UK would require at least two years to sort out all the formalities for making the exit from the 28-country EU bloc. UK is the third largest export destination for Bangladesh, with the country netting more than $3 billion from shipping various goods including readymade garments to that country. According to Export Promotion Bureau (EPB), Bangladesh major exports to EU include apparels, vegetables, fruits and agro-products.