[🇧🇩] Bangladesh and European Union

50 years of Bangladesh-EU relations
A thriving partnership throughout the decades

1973 was an eventful year. The Watergate scandal, the end of the war in Vietnam and the international oil price crisis following the Yom-Kippur-war all took place in 1973. The European Union (EU) saw its first enlargement, increasing its number from six members to nine. Furthermore in 1973, the EU established relations with a country that had just gained independence two years earlier: Bangladesh. This newly founded state, which had around 67 million inhabitants at the time, organised its first general election in the same year and also joined the movement of non-aligned countries.

Half a century later, Bangladesh almost tripled its population and following the great economic progress of the recent decade is now being heralded as a "new Asian tiger". Meanwhile, the EU expanded to 27 Members and today represents the largest single market area in the world. It also remains the most highly integrated regional organisation with 448 million people united in cultural diversity.

The advancements in Bangladesh-EU relations have reflected these spectacular developments: in 2001 the EU-Bangladesh cooperation agreement was signed which laid the foundation of trade relations with the European Union that provided Bangladesh duty-free access to the Union market under the Everything But Arms (EBA) initiative. EBA played a crucial role for Bangladesh in becoming the European Union's largest trading partner - today, more than half of Bangladesh's exports go to the EU, and the country recently even overtook China as the biggest exporter of garments into Europe.

Cooperation has intensified over the years and now includes new priorities such as climate change and green energy, but increasingly also a security dimension. The pandemic, which hit neighbouring countries hard, was well managed by Bangladesh. The vaccination rate, supported by a 250 million EU loan for procuring Covid-19 vaccines, was among the highest in the region and economic growth remained close to an impressive 7 per cent. In 2022, Bangladesh-EU relations reached a new pinnacle with the first ever political dialogue being held between the two sides, cementing these and future areas of cooperation, such as Bangladesh's participation in the EU CRIMARIO project to improve maritime security and safety in the Wider Indian Ocean.

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EU delays talks with Bangladesh on pact


The European Union said on Wednesday it postponed negotiations with Bangladesh on a new cooperation agreement after criticism of Dhaka's response to contain deadly protests that killed at least 150 people this month.

The cooperation pact seeks to enhance trade, economic and developmental relations between Bangladesh and the EU, which is the main trading partner for the South Asian country, accounting for 20.7% of Bangladesh's trade in 2023.

EU Foreign Policy Chief Josep Borrell last week criticised a reported "shoot on sight policy" in Bangladesh, killings "perpetrated by the authorities" as well as killings of law enforcement officers, mass arrests and damage to property.

Bangladesh Prime Minister Sheikh Hasina's government has denied any live rounds were fired, but hospital sources said the injured as well as dead bore wounds from bullets and shot gun pellets.

"In light of the prevailing situation, the first round of negotiations on the Partnership and Cooperation Agreement envisaged for September has been postponed with no later date fixed as yet," Nabila Massrali, the EU's foreign affairs spokesperson, said in an email to Reuters.

Bangladesh, however, said the talks had been delayed to November as they clashed with the United Nations General Assembly session that begins on Sept. 10. The EU did not immediately comment on Bangladesh's response.

"This delay was due to the UN General Assembly and was decided well before the recent violence," said Uttam Kumar Karmaker, an additional secretary at the Economic Relations Division of Bangladesh's finance ministry.

A delay in talks could affect EU support for Bangladesh at a time when it is grappling with economic struggles, soaring inflation, high youth unemployment, and dipping foreign exchange reserves.

The high cost of living sparked deadly demonstrations ahead of January's national elections, in which Hasina won a fourth straight term in a vote boycotted by the main opposition party.

The recent protests led by students were against controversial quotas in government jobs and quickly spiralled into violence, killing 150 people, injuring thousands and shutting the country for days as curfew was imposed, the army called out and telecoms disrupted.

The restrictions were eased last week as students stopped the protests after the Supreme Court scrapped most of the quotas.

Hasina and opposition parties have both blamed each other for the violence, with the main opposition Bangladesh Nationalist Party (BNP) accusing Hasina of becoming increasingly authoritative in recent years.​

EU halts Dhaka talks. Is it a bad omen?

The European Union's (EU) postponement of the first round of negotiations with Bangladesh on a new agreement will impact trade, investment and development cooperation with the country's largest trading partner.

"In light of the prevailing situation, the first round of negotiations on the Partnership and Cooperation Agreement envisaged for September has been postponed with no later date fixed as yet," Nabila Massrali, EU spokesperson for Foreign Affairs and Security Policy, told The Daily Star in a message on July 31.

The decision comes after EU High Representative and Foreign Policy Chief Josep Borrell on Tuesday issued a statement condemning a "shoot-on-sight policy" announced by Awami League general secretary centring the quota reform protest.

In the statement, Borrell also expressed grave concern over unlawful killings perpetrated in recent days by the authorities in Bangladesh. He called for thoroughly investigating the killings and bringing those responsible to justice.

Many important issues are pending for negotiations with the EU.

This includes negotiations for obtaining lower tariffs on exports to the EU under a Generalised Scheme of Preferences (GSP) Plus scheme.

Bangladesh's eligibility for a current GSP will expire once it makes the United Nations country status graduation from a least developed to a developing nation in November 2026.

Moreover, issues over trade and development cooperation policies, investment, Rules of Origin (RoO) or the criteria for determining the national source of products and business climate and dialogues are pending with the largest trade bloc of the world.

"The relationship of Bangladesh with the EU is multifaceted," said Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue.

A negative impact on economic cooperation may come about if the current situation is not improved and negotiations initiated soon, said Rahman, also a noted economist and trade analyst.

Bangladesh must take into consideration the EU's concern over the country's current situation because the EU is the main export destination of the country, he said.

Bangladesh exported more than $24 billion worth of goods to the EU in 2023. This is 58 percent of Bangladesh's total export, according to the Export Promotion Bureau.

The postponement sends a negative signal to Bangladesh because the EU has been a very good friendly development partner since the country gained independence, said Rahman.

The next important issue is the negotiations on being eligible for the GSP Plus scheme. However, the negotiations will be delayed if the EU is not satisfied with the current situation of the country, he said.

Obtaining concessional loans and determining the RoO for Bangladesh will also be affected because of the postponement, he added.

Bangladesh has been enjoying duty-free trade benefits since 1975 under the EU's generous Everything but Arms (EBA) scheme.

Enjoying such preferential trade benefits, Bangladesh has eventually turned into a key trading partner to become the third largest exporter to this trade bloc of 27 countries.

In fact, Bangladesh is the largest garment supplier to the EU in terms of volume, overtaking China.

The country is also the largest denim supplier to the EU. It is estimated that one in every three persons in the EU wear denim trousers made in Bangladesh.

The EU has already informed that its rules would allow Bangladesh to be eligible for the existing trade benefits for three years past the country status graduation, meaning till 2029.

But after that, Bangladesh will face a 12.5 percent duty if it fails to come under the GSP Plus scheme fulfilling the EU's conditions over 32 international conventions, including four core ones on labour, human rights, good governance and environmental protection.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, echoed Rahman's views.

Investors and buyers in the EU, dealing with billions of dollars of investment and trade, are in the dark over their next course of action for the tension surrounding the postponement of negotiations, he said.

It is expected that the government will handle the situation with the EU diplomatically and politically as the bloc matters a lot for Bangladesh, said Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association.

Businesspeople will also talk with the government to give advice so that the relationship with the EU does not deteriorate further, he said.​

'Count on Europe's support in Bangladesh's reform drive'
European Commission President tells Yunus in New York


Photo: Collected

President of the European Commission Ursula Von der Leyen has assured Chief Adviser Professor Muhammad Yunus that "Bangladesh can count on Europe's support" in its reform drive.

"We also remain your partner for steady growth and infrastructure development under Global Gateway," she said during a bilateral meeting with Yunus on the sidelines of the United Nations General Assembly yesterday.

"Let's make the best out of our €400 million Bangladesh Renewable Energy Facility," said the European Commission president.

The chief adviser also held bilateral talks with Prime Minister of the Netherlands Dick Schoof on the sidelines of UNGA.

Meanwhile, International Criminal Court prosecutor Karim AA Khan KC called on Yunus at UN headquarters and discussed justice and accountability issues.​

Norway sees “great potential” in Bangladesh
UNB
Published :
Nov 13, 2024 23:01
Updated :
Nov 13, 2024 23:01



Newly appointed Ambassador of Norway to Bangladesh Hakon Arald Gulbransen on Wednesday said his country sees “great potential” in Bangladesh, with a huge consumer base, as a key market for trade and investment.

The ambassador met Foreign Secretary Md Jashim Uddin at the Ministry of Foreign Affairs and discussed several key areas of cooperation including trade and investment, Interim Government’s priorities, Rohingya issues, and climate change.

Both sides expressed satisfaction over the shift of Bangladesh-Norway relations from development cooperation to trade-centric partnership.

The Foreign Secretary thanked Norway for its support, particularly in renewable energy, shipbuilding and ship recycling.

He made a special request for support in the smooth transition of Bangladesh to a developing country, according to the Ministry of Foreign Affairs.

The Ambassador said that Norway sees great potential in Bangladesh, with a huge consumer base, as a key market for trade and investment.

Both sides reaffirmed their commitment to work together for enhanced bilateral relations.

The Foreign Secretary highlighted the interim government’s reform initiatives and sought cooperation for technical expertise, experience sharing, and support for the treatment and rehabilitation of the students injured during the mass uprising in July-August.

The Ambassador expressed support for these reform initiatives and committed to exploring broad areas where Norway could assist.

Appreciating Bangladesh’s efforts for hosting the Rohingyas, the Ambassador reaffirmed Norway's commitment to extend humanitarian assistance.

The Foreign Secretary thanked Norway for their assistance to the Rohingyas, highlighted the negative impacts on the host community and urged for a safe and sustainable return of the Rohingyas to their homeland in Myanmar.

​

27 EU envoys to meet Yunus soon
Staff Correspondent 17 November, 2024, 23:49


Interim government chief adviser Muhammad Yunus. | File photo

Interim government chief adviser Muhammad Yunus on Sunday said that 27 ambassadors of all the countries of European Union—20 of them stationed in New Delhi and the rest seven in Dhaka—would meet him in the next few days.

‘Twenty ambassadors from 20 European Union countries based in Delhi along with seven ambassadors from seven countries in Dhaka are coming to Dhaka in the next few days to meet me,’ Yunus said in his televised speech address to the nation marking 100 days of the government.

Three days after the fall of the regime of Sheikh Hasina, who fled the country to India on August 5 amid an unprecedented student-people uprising, Nobel laureate Yunus took office as the chief adviser of the interim government on August 8.

‘Never before did 27 ambassadors from the EU come together to discuss with the government,’ he said.

The reason for this gathering was to express the EU support and to develop high-level cooperation in the economic field, he said, adding that ambassadors from many countries, including Saudi Arabia, the United Arab Emirates, Brazil, Turkey, Russia, Finland, Singapore, Libya, have already met him.

‘They have assured me of increasing trade and investment along with various bilateral cooperation,’ he added.

Diplomatic sources said that the move was initiated so that all these diplomats could meet Professor Yunus at a time since the EU diplomats concurrently responsible for Bangladesh were willing to call on him.​