The readymade garment (RMG) exports to the United Kingdom grew by 1.3 per cent to US$ 1.87 billion in the first half (H1) of the current fiscal year (FY 2018-19).
The exports to the Bangladesh's second largest market in European Union rose marginally from $1.85 billion of the same period of FY 2017-18, according to Export Promotion Bureau (EPB) data.
The H1 export growth was substantially slower than the annual 12.63 per cent growth registered in FY 2017-18.
The exporters attributed the Brexit issue to the slow export growth, explaining that the buyers were uncertain about the possible impact of the issue.
The exports of woven apparel items declined 4.78 per cent to $ 826.69 million in H1 of the current FY from $868.61 million in the same period of the last FY.
The exports of knitwear items grew by 6.67 per cent to $ 1.04 billion in July-December of FY 2018-19. The country fetched $ 981.97 million during the corresponding period of the last fiscal.
When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice President Faruque Hassan said an uncertain environment has emerged over the Brexit issue and, as a result, the UK buyers were now in a 'wait and watch' mood.
"In such an uncertain situation, the buyers usually don't want to take risk and want to remain stable by reducing their volume of purchase," he said.
Former vice president of Bangladesh Knitwear Manufacturers and Exporter Association (BKMEA) Mohammad Hatem said the UK buyers were now feeling comfortable placing orders in the countries having free trade agreements or other regional or bi-lateral agreements to avert any untoward situation.
Mr Hatem, who exports to UK, said his company also witnessed at least 20 per cent fall in export in the market in recent times.
Centre for Policy Dialogue (CPD) Additional Research Director Khondaker Golam Moazzem said the import and export volatility remains in an uncertain situation due to the Brexit issue, which would also affect the exchange rate of currencies. The importers do not also want to take risk in this situation, he added.
Both the buyers and consumers follow a wait and watch mood in spending, he said.
The BGMEA leader, however, said Bangladesh apparel items might not be affected much even if the UK leaves the EU and expected that the duty-free access to the UK market would continue.
During July-December period of this FY, the country's garment exports to EU stood at $ 10.53 billion marking a 9.98 per cent growth over the same period of the previous fiscal year.
The apparel exports grew by 18.93 per cent to $ 3.09 billion to the US during the same period, according to data.
Canada imported apparel items worth $ 526.67 million, which is 20.16 per cent higher compared to that of the corresponding period of last fiscal.
The apparel exports to the non-traditional markets like Australia, Japan, Korea, Russia, China and India recorded a robust 36.21 per cent growth with earnings worth $ 2.89 billion during the H1 of the current FY, data showed.
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