Bangladesh will lose trade benefits after Brexit

European Union (EU) Ambassador in Dhaka Pierre Mayaudon yesterday hoped that the shared objective of having a "safer" place for all will be achieved though it will take some time.

“This [safer place] is a shared objective and by mobilising all our resources, we'll certainly reach it. But it'll take some time,” he said while describing his current security perception in Bangladesh.

The ambassador acknowledged that efforts being made by police, law enforcement agencies and others to that end and mentioned that they had a very lively debate on Wednesday titled "Life and Business as Usual" in the city. Mayaudon was responding to queries at a lecture titled "Bangladesh-EU Relations: A Multifaceted Partnership" hosted by the Bangladesh Institute of International and Strategic Studies (BIISS) in its conference room.

About effects of Brexit on Bangladesh, he said, "For Bangladesh, of course today, there's no consequence, and it's business as usual but obviously it's not for a long time."

The day the UK will quit the EU single market, Bangladesh will lose automatically the trade benefit under "the Everything but Arms" (EBA) regime, and Bangladesh and the UK will renegotiate trade issues ensuring zero impact on Bangladesh.

Talking about transformation in Bangladesh's readymade garment industry through "sustainability compact", the EU envoy said it is kind of preparation so that Bangladesh can face challenges once it will become a middle-income country by 2021.

Bangladesh will lose EBA or duty-free market access once it turns into a middle-income country. “But this won't happen overnight,” Mayaudon assured, saying that there will be a transition period of three years during which Bangladesh can prepare to apply for GSP Plus benefit which is as good as the EBA.

Responding to another question, he said when the UK will leave the EU, it will obviously have an impact in terms of resources coming from the member states. Mayaudon, however, said they have their own resources and they also need to benefit from member states resources. BIISS Director General Maj Gen AKM Abdur Rahman also spoke.