Latest issue of Textile Outlook International says, several major clothing exporting countries could lose their preferential access to the UK market when Britain leaves the EU. Unless special terms of access are negotiated, Britain’s withdrawal from the EU, a process commonly known as Brexit, could have major consequences for such suppliers given the size of the UK market.

Last year, the UK was the EU’s second largest clothing import market in value terms after Germany with a 17.7 per cent share of EU clothing imports into all member states. And in volume terms, it was the largest market with a 22.1 per cent share. Because the UK is a member of the EU, exporters in many developing countries like Bangladesh, Cambodia, Myanmar, Pakistan and Peru enjoy duty-free access to the UK textile and clothing market under arrangements which form part of the EU’s Generalised Scheme of Preferences (GSP). At the same time, imports from Turkey are allowed to enter the UK duty-free and quota-free under the Customs Union between Turkey and the EU. Additionally, while the UK remains a member of the EU, exporters in Vietnam stand to gain from improved access to the UK import market when the EU-Vietnam free trade agreement comes into force.

But if and when the UK leaves the EU, imports into the UK from poorer countries such as Bangladesh and Cambodia will, by default, be subject to a common external tariff as declared to the World Trade Organization (WTO) unless special trade agreements are put in place to provide these countries with preferential access to the UK market in particular. While referring to the WTO, it is worth noting that, technically, the UK would have to join the WTO on its own account if and when it left the EU. Moreover, UK membership of the WTO would require the approval of all of the WTO’s member states.