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By
Fibre2Fashion
Published
Jul 28, 2016
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Mauritius textiles export earnings to shrink 10% post-Brexit

By
Fibre2Fashion
Published
Jul 28, 2016

Earnings from textile exports by Mauritius to Britain are likely to drop by 10% this year as a result of the British vote to leave the European Union, the country's export association said.


Mauritius textiles export earnings to shrink 10% post-Brexit - Fibre2Fashion


"Quantity wise, there will be a drop of 10% in our exports to the UK as a consequence of the fall in consumerism level in UK coupled with the depreciation of the pound," the Mauritius Exports Association (MEXA) said, in a report.

According to the report, 90% of all revenues from exports of textile and apparels to the UK comes in pounds while imports are in U.S. dollars.

As a result, Mauritian exporters' profitability is expected to be "squeezed both in terms of exports and imports; exports revenue being depleted with the depreciation of the pound...and costs being inflated with the appreciation of the U.S. dollar".

The EU is Mauritius' largest trading partner, with annual earnings averaging 25.5 billion rupees ($722.77 million) as a result of goods shipments to the bloc.

Within EU, Britain is the largest buyer of Mauritian goods, accounting for 18 % of total exports to the bloc. Textiles are Mauritius' top export to the UK, followed by seafood and sugar.

In 2015, textile and apparel exports to Britain amounted to 6.57 billion rupees, according to MEXA data. 

 

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