The vastness of the bicycle industry in Bangladesh
The news is ruled by facts and growth of the economy of the continent of Asia. When we think of Asia - and is written about - we tend to talk about China, Japan, Korea, and India. But there are so much more countries that are growing in economy. We at Bicle looked at what Bangladesh has to offer in terms of the Bicycle industry.
Bangladesh - formerly known as East-Pakistan - is a country in the south of Asia and is surrounded by India and has small border with Myanmar, which gained independence in the year 1971. In a census in 2017 counting the amount of people living in the country, it was concluded that approximately 158 million people live in Bangladesh. Just like neighbouring country India, the bicycle industry is rapidly growing.
Export to the EU
The bicycle industry of Bangladesh is strongly connected to the European Union. According to data provided by Eurostat, Bangladesh exported 731,000 bicycles to the European Union.
According to a report by Bangladesh Independent, Bangladesh in accountable for 11% of the market share in the total of imported bicycles to Europe. The whole export by Bangladesh is worth almost USD 57 million.
Brexit causes uncertainty
Just like any other possible industry, the Bicycle industry is also affected by Brexit, the decision of the UK to leave the European Union. At this time it’s quite uncertain how this will happen and if it will happen, but it will prove to be hard for the bicycle industry in Bangladesh.
With the Brexit in sight, Bangladesh bicycles companies could see some benefits - such as the Generalized System of Preferences status of GSP+ - being jeopardized. This would imply that, when the Brexit actually happens, those manufacturers lose the privilege of shipping their products duty free. This would leave Bangladesh in a very tough spot.
Dependent on export to the UK
The Asian country hugely depends on the export of bicycles to the UK, a number close to 51% - which means that more than halve of the bicycles is exported to the UK. And they will quite possibly lose a huge amount of money, if Brexit happens. They can’t export duty free to the UK anymore and will have to pay a lot in terms of taxes and customs.
But the UK is not the only country that imports from Bangladesh. Germany is Bangladesh second biggest customer with exports worth of USD 10.08 million, followed by Denmark (USD 4.05 million), India (USD 4.14 million) and Belgium (USD 3.29 million).
What was your initial thought on the Bangladesh Bicycle industry? Positive or negative? And, what will happen if Brexit happens? We at Bicle would love to know your answer. Let us know in the comments.