Bangladesh Set to Bear Brunt of Brexit

Duty-free status, taxes and market uncertainty leave Commonwealth in turmoil

0
1685
Rainmaker23 https://goo.gl/TzQPYb

According to research published by the Commonwealth Secretariat, Bangladesh has topped the list of Commonwealth countries that that would face the most impact from Brexit. This is due to the increased import duty they would have to pay under the possible new tax bill.

The report states:

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

However as the report focuses on large exporters to the UK, these significant impacts on small states such as the Seychelles are obscured.

Trade deals, long established, are now at the mercy of Brexit as the government scrambles to set up new plans with the EU, Commonwealth and wider world. This uncertainity has left all of the UK’s trade partners in turmoil.

For Bangladesh, the issue is particularly threatening as the UK is their third largest export destination. Until now, traders had enjoyed duty-free access to UK markets under the EU. With Brexit under way, it may only be a matter of time before Bangladesh loses its duty-free privilege and will have to start paying a tax.

Other Commonwealth countries expected to suffer include India, Pakistan, South Africa, Mauritius, Seychelles, Ghana, Sri Lanka, Kenya and Papua New Guinea.

LEAVE A REPLY

Please enter your comment!
Please enter your name here