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BREXIT impact on Bangladesh

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The slide is about BREXIT and its impact on Bangladesh.

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BREXIT impact on Bangladesh

  1. 1. BREXIT and its impact on Bangladesh PRESENTED BY MOHAMMAD KAWSAR AHAMMED MINHAZUR RAHMAN REZVI
  2. 2. Introduction  Bangladesh enjoyed the advantage of free duty access to UK markets as well as EU market.  But, after BREXIT, Bangladesh will not get the opportunity to export its product with the advantage of GSP.  Bretain is interested in protecting its domestic market by the imposition of import barriers.
  3. 3. Literature review  Bangladesh has enjoyed balance of trade with EU since 1991and the balance remained in favor of Bangladesh for a very long period.  Free trade helps to increase the global level of output and it also helps to make countries specialize in particular goods.  Trade liberalization also helps to involved countries to boost up their economy by the agreement of supply of products between the countries.
  4. 4. Before impacts of BREXIT 146992.88 193365.49 220971.21 226503.76 248967.46 207360.16 0 50000 100000 150000 200000 250000 300000 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 Average FY11-15 Remittance from RMG Export Average Export before BREXIT
  5. 5. Analysis  The most challenging issue for Bangladesh is that having the duty free trade privileges export to UK after the Brexit.  Apart from export remittance income from European Union to Bangladesh may fall significantly due to the Brexit.  UK was the only connectors between Bangladesh and EU, through which Bangladesh gets the 12.5% duty benefit.
  6. 6. Before impacts of BREXIT 901.23 812.34 863.28 808.16 846.2525 760 780 800 820 840 860 880 900 920 2013-14 2014-15 2015-16 2016-17 Average from FY14-17 USDmillions Wage Earners Remittance inflow from U.K
  7. 7.  Britain is the third largest country big market for textile cloth of Bangladesh  Export earnings from the apparel industry have seen only a 0.20% rise to $28.15 billion.  In FY 2015-2016, Bangladesh exports to UK totaled $3.40 billion o and $3.18 billion came from the garment sectors (EPB, 2016). Impacts on Bangladesh
  8. 8. AFTER 10 PERCENT FALL OF POUND AGAINST US DOLLAR, WILL MAKE BANGLADESHI GARMENTS MORE EXPENSIVE TO BRITISH BUYERS. THE SOUTH ASIAN COUNTRY HAVE TO PAY ADDITIONAL US$324.56 MILLION TARIFF ANNUALLY WHILE EXPORTING TO THE UK MARKET (FINANCIAL EXPRESS, 2016) BANGLADESH MIGHT LOSE THE 12.5 PER CENT TARIFF TAX PRIVILEGE. Impacts on Bangladesh
  9. 9. 146992.88 193365.49 220971.21 226503.76 248967.46 0 0 0 0 0 206511 0 50000 100000 150000 200000 250000 300000 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 Brexit(pre.2018) Remittance from RMG Export Post-Brexit
  10. 10. Impacts on Bangladesh  The UK is the second largest source of remittance for Bangladesh.  Migrant workers living in the UK send $1 billion in remittance every year.  A devalued Pound Sterling, migrant workers and nonresident Bangladeshis may send low remittance to Bangladesh.
  11. 11. 2013-14 2014-15 2015-16 2016-17 2017-18 U.K 901.23 812.34 863.28 808.16 332.22 0 100 200 300 400 500 600 700 800 900 1000 USDinmillions Wage Earners Remittance inflow from U.K
  12. 12. Conclusion:  Brexit is one of the largest risks to lower and middle income nations .  Bangladesh as developing country is the most affected country by Brexit.  Bangladesh government has to negotiate with UK for continuing the trade facilities including duty free exports facilities. Conclusion
  13. 13. Thank You

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