Bangladesh’s garment exports to the UK grew 10.47 per cent in the July-September period of the fiscal year. British retailers have increased the volume of sourcing from Bangladesh. The upward trend in the exchange rate of the pound sterling against the taka is also a major cause for the rise in exports from Bangladesh to the UK.

Also, Bangladesh was able to ride out an image crisis in the garment sector after factory remediation. Overall, European buyers are placing orders for higher volume of garment products as workplace safety has been ensured following the inspections. Although the UK market is attractive, it accounts for only eight to nine per cent of total garment exports from Bangladesh.

The average price level in the UK is extremely low in comparison with other EU markets and is under constant pressure. Traditionally, UK buyers tend to pay far less for similar products than the other EU retailers. This situation will aggravate further with Brexit, the plummeting of the pound sterling and the absence of a bilateral trade deal with Bangladesh.

So Bangladesh should start bilateral negotiations with the UK as soon as possible to secure a future export position or to prevent the current position from sliding further.