Desk Report:
Significant progress has been made towards further strengthening and facilitating trade relations between Bangladesh and the European Union (EU). Bangladesh has resolved 48 out of 61 non-tariff barriers identified by the EU. The remaining issues are also in the process of being resolved quickly.
At the same time, preparatory talks on a formal Free Trade Agreement (FTA) and Investment Protection Agreement with the European Union, Bangladesh’s largest export market, are about to begin.
Commerce Minister Khandaker Abdul Muktadir gave this information at a joint press briefing held at the conference room of the Ministry of Commerce on Sunday (September 6). The event was attended by European Union Ambassador and Head of Delegation to Bangladesh Michael Miller, Advisor to the Ministry of Finance and Planning Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaid, State Minister for Planning Jonayed Abdur Rahim Saki and senior officials of the Ministry of Commerce and Foreign Affairs.
The Commerce Minister said that after assuming office last March, a delegation led by the European Union Ambassador highlighted some specific obstacles in conducting trade with Bangladesh. After that, a large part of these problems were resolved in the shortest possible time with the coordinated efforts of all concerned parties including the National Board of Revenue (NBR), the Ministry of Agriculture, Fisheries and Livestock, and the Ministry of Shipping.
One of the important issues resolved was
- Resolving the complications related to the renewal of licenses of 100% foreign-owned logistics companies.
- Increasing the annual limit of commercial sample import from US$ 10,000 to US$ 20,000.
- Removing customs complications of scanning smart cards used to ensure traceability of exported products and determining reasonable prices.
Expecting EU cooperation in LDC graduation
Regarding Bangladesh’s initiative to postpone the deadline for graduation from the LDC (Least Developed Country) list by three years, the Commerce Minister said that the recommendations of the United Nations Committee on Development Policy (CDP) and the Economic and Social Council (ECOSOC) have come out positively. The matter will be presented for final decision at the upcoming 81st session of the United Nations General Assembly. In this regard, the strong support of the European Union will play an important role for Bangladesh.
EU’s positive response to FTA negotiations
EU Ambassador Michael Miller said that the European Commission has responded positively to the formal proposal of the Bangladesh government for a free trade agreement and investment protection agreement. Joint technical discussions on this matter may begin this week if the necessary approvals of the European Union member states are completed.
He said that in order to deepen economic cooperation between the two sides, it is necessary to ensure a transparent, stable and competitive business environment. If transparency and fair competition are maintained in the government procurement process, both Bangladesh and the European Union will benefit.
At the time, he also expressed optimism about the speedy progress of the Airbus procurement negotiations as part of increasing aviation and trade cooperation between Bangladesh and the European Union.
Import decisions based on national interests
In response to a question about importing goods from the United States, the Commerce Minister said that Bangladesh always takes import decisions by considering national interests, economic rationality and the needs of the people. In the case of importing fuel (LNG) and food grains, the Government Procurement Committee approves the decisions after analyzing the competitive price, product quality and wastage rate.
He also said that Bangladesh’s trade policy is not guided by the influence of any particular country; rather, the country’s economic interests and the welfare of the people are the main basis of all decisions.
New horizons for Bangladesh-EU economic partnership
According to analysts, the start of negotiations on a free trade agreement with the European Union will create new opportunities for Bangladesh’s export sector, especially ready-made garments, agro-processed products, pharmaceuticals and other promising industries. At the same time, bilateral investment and technical cooperation are also likely to expand further as trade barriers are removed.
Today’s progress is being considered an important milestone in transforming the long-standing trade relationship between Bangladesh and the European Union into a more sustainable and mutually beneficial partnership.
