Bangladesh’s merchandise exports to the United Kingdom dropped by 5.60 per cent during the eleven months of the current fiscal year. The country’s exports to the UK stood at 3.25 billion dollars in the July to May period of this fiscal. The amount was 3.44 billion dollars in the same period of financial year ’16.

Such export decline could be attributed to Brexit or Britain’s exit from the European Union. After Brexit, Bangladesh has to pay 400 million dollars as additional import duty, which is around eleven per cent of its annual export to the UK, and it will also require renegotiating a bilateral trade policy. Total annual exports to the UK were 3.81 billion dollars in the past fiscal year.

The UK is the third single largest destination for Bangladesh’s exports where all products enjoy duty-free market access following the EU’s everything but arms regime. Bangladesh historically maintains a positive trade balance with the UK. The UK is one of the largest development partners of Bangladesh. It also has substantial business interests in Bangladesh and remains the second biggest foreign investor.

Brexit is expected to bring trade and investment opportunities for Bangladesh. Bangladesh would be among the most affected developing countries of the Commonwealth in terms of tariff.