Brexit unlikely to affect Lao, overseas trade
Brexit unlikely to affect Lao, overseas trade
Britain's decision to leave the European Union (EU) has sent shockwaves around the world, but will have no impact on trade between Laos, the European countries and the UK.
“Trade in Laos is unlikely to be affected even if Britain leaves the EU because Lao products are mainly exported to the EU market as we have privileges under the Generalised Scheme of Preferences (GSP) from the EU,” Director General of the Ministry of Industry and Commerce's Foreign Trade Policy Department, Dr Laohoua Cheuching, said.
The GSP allows developing countries such as Laos to pay less or no duty on exports to EU markets, to help them build their economies.
“Only a small quantity of Lao products are exported directly to the UK, and the value is relatively low. That's why there won't be any impact,” Dr Laohoua said recently.
“On the other hand India is a main exporter to the EU and UK and the value of this trade is much larger, but India will probably also feel no impact from Brexit,” he added. “Some Asean countries will be affected, but not Laos.”
The main products exported by Laos to the EU and the UK are garments and agricultural produce, consisting mostly of canned vegetable such as sweetcorn which is produced in Vientiane province.
“These products are good quality. If not, the EU and UK markets won't accept them,” he said. A report from the ministry on Friday noted that Laos' exports to the UK were valued at over 340.83 billion kip (US$42.45 million) in 2014, while the UK's exports Laos were worth over 44.19 billion kip (US$5.5 million) that year.
Last year Laos' exports to the UK were worth over US$45.84 million, while the report did not reveal the value of the UK's exports to Laos.
A UK government website said that since the re-opening of the British Embassy in Laos in late 2012, there has been a steady increase in UK business interest in Laos' emerging economy.
UK goods exports to Laos increased by 20 percent to £3.98 million in the first 11 months of 2013, compared with the same period in the previous year. Imports of Lao goods to the UK also jumped by 9 percent to £42 million for the period.
British brands such as Land Rover, Jaguar and JCB are also increasingly popular amongst Lao consumers.
The embassy, partnering with the European Chamber of Commerce in Laos and the regional UK Trade and Investment (UKTI) network, supports UK companies interested in the Lao market by running projects aiming at improving the business environment as well as proactively raising issues with the Lao government.
The embassy has also initiated the formation of the British Business Group, a loose networking platform for UK companies in Laos.
