Trade Scenario Between Bangladesh and United Kingdom

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Trade Scenario Between Bangladesh and United Kingdom

Trade Scenario Between Bangladesh and United Kingdom

The United Kingdom's (UK) export market is crucial for developing and small island developing states (SIDS) including Bangladesh. And among them, some of the countries' export is significantly dependent on the UK market. According to ITC Trade Map, during 2012-2016, their average export share to this market was: Belize (24 per cent), Mauritius (15 per cent), Sri Lanka (10 per cent), St Lucia (10 per cent), Bangladesh (9 per cent), and Fiji (8 per cent). All these countries are still enjoying Duty-Free, Quota-Free (DFQF) market access to the UK in terms of exporting their goods under the European Union (EU)'s Everything But Arms (EBA) scheme.

So, considering the Brexit, it was a matter of grave concern for the least developed countries (LDCs) including Bangladesh as to what would happen to their existing DFQF facilities to the UK market, when the latter will finally leave the EU. But in the June of 2017, it came as good news for these countries when the government of UK made a pledge to allow market access to the UK market for the world's poorest countries--around 48 in number, across the globe. Indeed this decision will have a positive impact on the overall economies of Bangladesh as well as 47 other LDCs, particularly for their exports.

The United Kingdom is the third largest importer of Bangladeshi exports. During the July-June period of the 2020-2021 fiscal year, the United Kingdom exported goods worth USD 3,751.27 million, which is 9.8% of Bangladesh's total exports. The main products exported from Bangladesh are Oven (72) (USD, 1,331.02 million), Knitwear (61) (USD 2,113.55 million), Home Textiles (63) (USD 95.60 million). Dollars), crustaceans (0308) (USD 54.39 million) and bi-cycles (612) (USD 45.03 million). Note that the export income of the same period last year was 8.61% higher than 3453.6 million US dollars.

Export and Import Statistics Between Bangladesh and U.K ( Value in milliom US$)

2018-2019	4169.31	482.70	(+) 3686.61
2019-2020	3453.88	411.10	(+) 3042.78
2020-2021	3751.27	359.90	(+) 3391.37
2021-2022	4828.08	630.80	(+) 4197.28
2022-2023	5310.09	415.30	(+) 4894.79

The export potential of Bangladesh’s current export commodities to the UK (top ten items)

Hs Code	Export Potential (Million USD)	Actual Exports from Bangladesh (Million USD)	Untapped Potential (Million USD)	Applied tariff by the UK (%)	UK's Import from World (Million USD)	Bangladesh's Export to the World (Million USD)
610910	735.4	467.5	267.9	0.0	1800.0	5600.0
620342	472.2	282.7	189.5	0.0	967.1	5500.0
620462	421.3	304.2	117.0	0.0	995.3	3400.0
611030	367.9	225.3	142.7	0.0	1300.0	2300.0
611020	348.0	185.7	162.3	0.0	1200.0	2700.0
620520	248.7	141.9	106.8	0.0	566.6	1800.0
610462	185.5	150.5	35.0	0.0	430.4	1200.0
611120	163.6	66.2	97.4	0.0	486.5	858.5
610510	135.2	87.7	47.5	0.0	365.5	938.3
620343	107.7	86.5	21.2	0.0	400.1	676.3

Top 20 Exported Item in South Korea for the year 2020-2021:

SL	HS Code	Item Name	Amount in USD
1	01069000	01069000: OTHER LIVE ANIMALS, NES	706,421,073.56
2	61091000	61091000: T-Shirts, Singlets And Other Vests, Of Cotton, Knitted Or Crocheted	297,220,487.20
3	62034200	62034200: Men'S Or Boys' Bib & Brace Trousers, Breeches, Shorts, Of Cotton	251,969,481.89
4	61102000	61102000: JERSEYS, PULLOVERS, CARDIGANS, WAISTCOATS & SIMILAR ART., KNITTED OR CROCHETED OF COT	246,217,723.80
5	62046200	62046200: Women'S Or Girls' Trousers, Breeches, Etc, Of Cotton	201,245,515.04
6	61046200	61046200: Women'S Or Girls' Trousers, Etc, Of Cotton, Knitted Or Crocheted	161,473,398.60
7	61103000	61103000: JERSEYS,PULLOVERS,CARDIGANS,WAISTCOATS.., KNITTED OR CROCHETED OF MAN-MADE FIBRE	106,985,295.08
8	61082100	61082100: Women'S Or Girls' Briefs And Panties Of Cotton, Knitted Or Crocheted	103,259,085.62
9	62052000	62052000: Men'S Or Boys' Shirts Of Cotton	100,841,587.92
10	61071100	61071100: Men'S Or Boys' Underpants And Briefs Of Cotton, Knitted Or Crocheted	95,985,551.71
11	62121000	62121000: Brassisres	86,724,728.97
12	62034300	62034300: Men'S Or Boys' Bib & Brace Trousers, Breeches & Shorts Of Synthetic Fibres	75,445,339.76
13	61051000	61051000: Men'S Or Boys' Shirts Of Cotton, Knitted Or Crocheted	71,765,905.28
14	61034200	61034200: Men'S Or Boys' Trousers, Etc, Of Cotton, Knitted Or Crocheted	69,533,364.08
15	61112000	61112000: Babies' Garments, Etc, Of Cotton, Knitted Or Crocheted	53,927,789.34
16	03061700	03061700: Other shrimps and prawns	45,277,714.38
17	61083100	61083100: Women'S Or Girls' Night Dresses, Pyjama Etc, Of Cotton, Knitted Or Croched	45,030,994.24
18	87120000	87120000: Bicycles And Other Cycles, Not Motorized	39,537,164.12
19	62046900	62046900: Women'S/Girl'S Trousers,Breeches,Etc,Of Oth.Tex.,(Exl.Wool,Cotton,Syn.Fib.	34,760,512.55
20	62046300	62046300: Women'S Or Girls' Trousers, Breeches, Etc, Of Synthetic Fibres	33,219,269.87