The Myanmar Garment Manufacturers Association (MGMA) doesn’t foresee immediate adverse effects on exports from the Brexit vote even though UK is one of the largest European garment importers.

Europe is currently the second largest importer of garments from Myanmar after Japan. Among the 28 European Union countries, Germany, the UK and Spain are the major players in garment product trade.

While the vote to exit the European Union has been cast in late June, the official two-year separation process is yet to begin. So it will not negatively impact the Myanmar garment sector, it is understood.

The United Kingdom is second-largest trading country among the EU. The Brexit process will take two to two and a half years. The impact may be felt in 2018-19, it is also gathered.

Myanmar’s garment exports rely on countries that Myanmar has a General System of Preferences (GSP) status with. The EU offered GSP status to Myanmar in 2013. And that is why exports to the region have increased.

If the UK continues Myanmar’s GSP status post removal, there will be no impact on the sector. In the previous fiscal year, garment trade volume between Myanmar and EU reached $460 million.

Myanmar’s garment export reached $1 billion in 2012-13, $1.4 billion in 2013-14, and $1.6 billion in 2014-15 fiscal year, according to a statistics released by MGMA.