Lankan apparel exporters
see opportunity in Brexit
Capitalizing on Britain’s decision to quit the European Union (EU), Sri Lanka’s
apparel exporters say Brexit might result in a level playing field as other
exporting countries which currently enjoy duty-free access to the United Kingdom
(UK) under GSP will also lose the facility when London walks out of the
28-nation bloc.“There is also an opportunity that I see from it (Brexit). If you
take a country like Bangladesh, they have got GSP Plus and as a result they have
duty free access but we don’t ... If Brexit happens, then we will be able to
compete better,” said Noel Piyathilake, chairman of the Joint Apparel
Association Forum (JAAF).Sri Lanka, which has been losing half a billion dollars
since the withdrawal of GSP facility by EU in 2010 due to poor human rights
violation in the wake of armed internal conflict, will be exposed to a level
playing field as the GSP plus facility will not stand for exports to UK post
Brexit, Piyathilake said.The Brexit will result in Sri Lanka having to negotiate
a separate trade agreement with the UK and so would other exporting countries
such as Bangladesh, Pakistan and Myanmar, because GSP Plus concessions will
cease to apply on exports to the UK, Piyathilake told a forum which discussed
the impact of Brexit to Sri Lankan economy.
According to Sri Lanka’s Central Bank data, 29% of the country’s exports go to
the EU and 34% of these reach UK. This is slightly less than 10 % of the island
nation’s garment exports that are worth a little more than $ 1.0 billion.
Apparel exports accounted for 46 % of total exports from Sri Lanka in
2015.Piyathilake said at least 18 % of global apparel exports go to the UK—the
fifth largest economy in the world—hence the impact of Brexit would be felt
deeply by the industry globally.
(Fashion2Fiber.com)
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