[🇧🇩] Bangladesh and European Union

[Saif]

Source : https://www.thefinancialexpress.com.bd/views/views/a-thriving-partnership-throughout-the-decades-1677344565

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.

To read the rest of the news, please click on the link below.​

 

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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

www.thedailystar.net

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.​

 

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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 P

www.thedailystar.net

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.​

 

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'Count on Europe's support in Bangladesh's reform drive'

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

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'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.​

 

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Norway sees “great potential” in Bangladesh

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 For

thefinancialexpress.com.bd

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.

​

 

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27 EU envoys to meet Yunus soon

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...

www.newagebd.net

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.​

 

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EU wants comprehensive partnership with Bangladesh

The EC expressed its interest nearly two and a half months after Bangladesh and the EU completed a two-day introductory meeting on the CPCA in the first week of November.

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EU wants comprehensive partnership with Bangladesh

European Commission (EC) President Ursula von der Leyen has said that the European Union wants to continue its ongoing collaboration with Bangladesh and explore new avenues to build partnerships, including through a possible Comprehensive Partnership and Cooperation Agreement (CPCA).

"We remain open to discussing specific needs with sectoral partners and considering additional support that aligns with ongoing initiatives," she said in a letter to Chief Adviser Prof Muhammad Yunus on January 14.

The EC stated that there is substantial potential under the Global Gateway initiative for EU investments in secure and reliable networks and connectivity, including railways, water resources, climate adaptation, health, digital services, and energy.

"In parallel, we are working with your administration to bolster the capacity of key institutions. We intend to maximise the impact of this work by integrating targeted technical assistance to support policy development and effective governance in these sectors, sharing EU experience where relevant," she added.

The EC expressed its interest nearly two and a half months after Bangladesh and the EU completed a two-day introductory meeting on the CPCA in the first week of November.

The meeting, originally scheduled for July 31, was postponed amid student-led protests that eventually led to the fall of the Awami League government on August 5.

The EU is the largest trading bloc for Bangladesh, accounting for more than 58 percent of its total exports each year, with zero-duty benefits under the EU's Generalised Scheme of Preferences (GSP) for Everything But Arms (EBA).

This benefit is expected to be phased out three years after Bangladesh graduates from the group of least developed countries, which is scheduled for late 2026.

Annually, Bangladesh exports more than $25 billion worth of goods to the EU, with garments contributing nearly $22 billion.

The EU alone accounts for more than 64 percent of Bangladesh's total apparel exports.

Bangladesh's garment exports to the EU grew 2.99 percent year-on-year to $18.15 billion in the January-November period of 2024, according to data from Eurostat.

Bangladesh is the second-largest garment exporter to the EU after China.

One in every three EU consumers wears Bangladeshi-made denim, a garment category in which Bangladesh has surpassed China in the EU over the last 10 years.​

 

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Welcome EU proposal for CPCA

At a time American President Donald Trump suspends nearly all the US global funding including the project aid in Bangladesh, the eagerness shown by the EU to sign a Comprehensive Partnership and Cooperation Agreement (CPCA) with its small South Asian partner serves as a timely morale booster. The U

thefinancialexpress.com.bd

Welcome EU proposal for CPCA
FE
Published :
Jan 29, 2025 23:59
Updated :
Jan 29, 2025 23:59

At a time American President Donald Trump suspends nearly all the US global funding including the project aid in Bangladesh, the eagerness shown by the EU to sign a Comprehensive Partnership and Cooperation Agreement (CPCA) with its small South Asian partner serves as a timely morale booster. The US has remained the number one importer of Bangladesh apparel and the European Union (EU) is the second highest importer of this country's commodities. While a late December surge in export to the US by 18 per cent compared to its previous year was responsible for the improved Bangladesh performance, export to the EU also witnessed a four-month streak of buoyancy to retain its second position after China but evidently it falls far short of the US total.

However, as a single bloc of countries, the EU is the largest importer of goods from Bangladesh, 90 per cent of which is clothing. On the positive side of it is the duty-free access of Bangladesh goods to the bloc. But of the EU's total import of $7.0 trillion, the share of apparel is only 2.9 per cent. Evidently, Bangladesh's share in non-RMG exports is almost non-existent. The envisaged CPCA can bring about a paradigm shift in both RMG and non-RMG export, provided that the EU makes investment in the country's productive sectors. Here the emphasis is on 'comprehensive'---a word covering all aspects and dimensions of educational, industrial, commercial, technical, consultative requirements suitable for a population young enough. With a wobbling economy, Bangladesh is struggling to stay afloat. Hence, it needs both short-term and long-term programmes for getting out of the morass. As immediate steps, the aging EU countries running short of both low-skilled workers and university graduates/engineers, its members can open their job markets to such working hands from Bangladesh under the proposed agreement once it is signed.

The European Commission President Ursula von der Leyen in her letter to Chief Adviser of Bangladesh has clearly indicated that the EU is willing not only to continue with the existing collaborative efforts in Bangladesh but also ready to explore new avenues for working on together. This is a positive sign for Bangladesh to seize for strengthening the partnership with the EU. Apart from cooperation in the education sector, it should extend to manpower training, technical knowhow and higher education for home-grown research aligning to the country's special needs. What is particularly refreshing is that the European Commission chief has made it further clear that the organisation remains open to discussions on specific needs with sectoral partners. The offer is unilateral and therefore most welcome.

There is no reason why Bangladesh will not accept the offer. However, the agreements should meticulously be tailored to suit the country's needs. At no stage should this smack of an imposition or an undue favour for the country. It should be business as usual based on mutual respect. This country has shown the world that it is ready for a paradigm shift in its polity. Its sustenance largely depends on its economic sustainability. The partners in progress must play a most positive role in this critical period in order to help establish here a dispensation guaranteeing human rights, democratic principles and economic liberty for all its citizens.​

 

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ICG urges EU support for Bangladesh economy

An overwhelming support the interim government enjoyed in the immediate aftermath of Hasina's downfall has begun to wane and pressure to deliver concrete results mounts, International Crisis Group (ICG), an international agency, says and urges EU support for the Bangladesh economy. "But whil

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Honeymoon period for interim govt truly over: ICG
ICG urges EU support for Bangladesh economy
Brussels-based nonprofit presents package dos for European Union
FE REPORT
Published :
Jan 31, 2025 00:38
Updated :
Jan 31, 2025 00:38

An overwhelming support the interim government enjoyed in the immediate aftermath of Hasina's downfall has begun to wane and pressure to deliver concrete results mounts, International Crisis Group (ICG), an international agency, says and urges EU support for the Bangladesh economy.

"But while the euphoria that accompanied Hasina's ouster translated into widespread support at the outset of Yunus's administration, the honeymoon is now over. Popular pressure has mounted on the government to start delivering not just on the promised reforms but also on improvements to day-to-day governance," says a report of the ICG.

The ICG report, titled 'The Dilemmas of a Democratic Transition', was released Thursday with a slew of recommendations for the European Union to come up with an aid package for Bangladesh now on the cusp of transition through wide-scale reforms.

The report is incorporated into 'EU Watchlist' prepared by the ICG to identify where the European Union and its member-states can enhance prospects for peace and stability.

"The challenges are likely to grow in the coming year, as opposition parties, student leaders, Islamist groups and other key players jockey for electoral advantage," the Brussels-based crisis-management group alerts in the report.

The ICG urges the EU to contribute to stabilising the national economy by using Europe's influence at international financial institutions to mobilise additional fiscal support for Bangladesh.

It also recommends that the EU help Bangladesh to create a more attractive environment for foreign investment, to support efforts to diversify the economy away from garment manufacturing, to assist with the recovery of assets linked to corrupt businesspeople and officials, and to continue negotiations with Dhaka on extending Bangladesh's preferential access to the European market beyond 2029.

In the geopolitical arena the ICG felt that the EU should take steps to limit tensions between Dhaka and New Delhi, including by quietly encouraging India, including through high-level engagements the EU is planning in 2025, to be more supportive of reform in Bangladesh.

"The EU should use its influence with both sides to overcome mistrust and shift relations onto a better footing." the report reads.

Free, fair and peaceful polls will be paramount for restoring the Bangladeshi people's faith in electoral politics, the ICG notes.

"To support Bangladesh, the EU and its member states should organise high-level visits and continue to emphasise support for the interim government's reforms in order to burnish the Yunus administration's public image domestically and weaken forces seeking to undermine its agenda," the report says, adding that the EU should also continue to pursue negotiations over a new Partnership and Cooperation Agreement.

"On 16 December, Dr Yunus said the vote would take place between December 2025 and June 2026, meaning that his administration would stay in office less than two years. The announcement has mostly, although not entirely, silenced the critics. But the prospect of polling day, even if it is distant, has also stirred up competition among the BNP, other political parties (such as the Islamist force Jamaat-e-Islami) and student leaders, who have now confirmed their plans to form a new political party," the report says narrating the present political landscape of the country.

However, it also points out that beyond the date, many of the details of the electoral process and the post-election period remain uncertain.

Preserving consensus among the various political forces at play will be "crucial for this process to succeed".

"With Hasina's AL banished to the political fringes, with its leaders in exile and its activists at home largely dormant, the BNP has become the country's largest political force. It is widely seen as the government in waiting," the report says, adding that many in Bangladesh are unnerved by this prospect for its tainted past when it ruled the country.

"When Yunus entered office, foreign-exchange reserves were dwindling, and food price inflation stood at almost 15 per cent. His actions, including installing competent officials at key institutions and ministries to improve policymaking and restore confidence, appear to have averted an economic crisis. But the economy has still taken a hit, due to political unrest and the uncertainty it has sown for businesses and investors," the Group mentions.

"Bangladeshis continue to suffer from stubbornly high inflation, particularly in the cost of food, while foreign-exchange shortages have contributed to widespread power cuts. The International Monetary Fund expects growth to rebound sharply and inflation to halve in the next fiscal year, but a buoyant economy will require reforms to encourage local and foreign investment, tackle corruption and red tape, and diversify into new sectors.

According to the report, "New Delhi's support for the ousted government made it deeply unpopular among Bangladeshis, and anti-Indian sentiment has grown since the uprising due to the perception that India is trying to undermine Yunus's government and engineer the AL's return."

It adds: "Indian authorities have not only sheltered Hasina in exile, but also made it difficult for Bangladeshis to get visas and, as noted above, regularly criticised Dhaka over minority and religious rights."

As such, Thomas Kean, Crisis Group's Senior Consultant on Myanmar and Bangladesh, concludes, "The honeymoon period for Bangladesh's interim government is now well and truly over. The political challenges are likely to increase this year as political parties and other key players negotiate over reforms and jockey for electoral advantage."​

 

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Proactive ties with EU stressed to tap GSP+ benefits

Experts at a conference on Monday laid emphasis on engaging proactively with the European Union to secure enhanced GSP+ benefits including duty-free access for garments...

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Proactive ties with EU stressed to tap GSP+ benefits
Bangladesh Sangbad Sangstha . Dhaka 24 February, 2025, 23:06

Experts at a conference on Monday laid emphasis on engaging proactively with the European Union to secure enhanced GSP+ benefits including duty-free access for garments.

They urged the authorities concerned to establish WTO-compatible export support mechanisms for providing support to the exporters in a compliant way.

They made the call at the inaugural session of the conference titled ‘Strategic Policy Realignment to Boost Investment and Achieve Export Diversification at the BRAC Centre Inn Auditorium in the city.

Centre for Policy Dialogue (CPD) organised the two-day conference on ‘Recommendations by the Task Force on Re-Strategizing the Economy’.

Commerce Adviser Sk Bashir Uddin attended the session as the chief guest while Former Commerce Minister and Chairman of the Sarina Group Amir Khosru Mahmud Chowdhury and CPD Chairman Professor Rehman Sobhan attended as special guests.

CPD distinguished fellow Professor Mustafizur Rahman, president of the Foreign Investors’ Chamber of Commerce and Industry Zaved Akhtar, deputy managing director of the Picard Bangladesh Limited Amrita Islam and team group managing director Abdullah Hill Rakib were distinguished discussants.

Chairman of the Taskforce on Re-strategizing the Economy KAS Murshid presided over the session while members of the Taskforce on Re-strategizing the Economy Selim Raihan and Mohammad A Razzaque delivered keynote speech.

In his speech, Sk Bashir Uddin highlighted the widespread corruption and money laundering in the banking sector and infrastructure development during the previous government’s tenure, which had put significant pressure on the macro-economy.

He underscored the need for diversification of the country’s export and increasing skilled workforce to strengthen the economy.

‘The entire economy of the country was corrupted in the past. Unnecessary projects and money laundering have caused great damage to the economy of this country. Corruption has occurred in the banking sector and various infrastructure construction projects,’ he said.

He said the main challenges now are ensuring continuous energy supply at fair prices, improving labour productivity, and enhancing logistics efficiency.

Initiatives should be taken to boost exports by increasing labor productivity, reducing production costs of products and increasing efficiency, he added.

Amir Khosru Mahmud Chowdhury laid emphasis on addressing whole macro-economic issues to bring back the country’s economy in a strong position.

He stressed that revenue should come from large-scale businesses in a developed private sector, not from VAT and other regulatory duties.

He also warned that without import liberalization, export incentives would not push exports beyond a certain limit.

Dr Mustafizur Rahman highlighted two contrasting examples of import liberalization–Singapore and Haiti.

‘While Singapore has strong export and institutional capacity, making liberal imports beneficial to its economy, Haiti presents the opposite scenario,’ he added.

He said that Bangladesh faces significant institutional capacity gaps in areas such as revenue collection, policy formulation, and implementation. ‘Without addressing these weaknesses, import liberalization could be risky,’ he said.

Dr Selim Raihan, also Executive Director of the South Asian Network on Economic Modeling (SANEM), said that Bangladesh witness lack of diversification both in industry and exports.

‘There could be three path ways to export and industrial diversification in Bangladesh. First one is garments. There have lots of scope to diversify garments exports. Second one is the labour incentive no-readymade garments. The third path way is to move into complex skill incentive export,’ he added.

Economist Razzaque, chairman of the Research and Policy Integration for Development, said the ready-made garment sector in Bangladesh has benefited from duty-free access to global markets, but this will no longer be available after LDC graduation.

He emphasized the urgent need to negotiate with the European Union to maintain this benefit even after December 2027.

He also pointed out Bangladesh’s failure to establish bilateral free trade agreements and called for swift action to sign an FTA with Japan.

To reduce the pressure on the macro-economy, Dr Razzaq stressed the need to rethink exports and remittances.

‘Currently, 30-40 per cent of the government’s incentives are going to companies producing goods for the local market. Moreover, 30 per cent of revenue comes from high tariffs on imports’, he said.

The economist said at present, 75 per cent of Bangladesh’s total exports depend on LDC benefits, which will no longer be available after graduation.

Razzaq highlighted that subsidies for exports will no longer be possible in post-graduation period.

He focused on securing an Free Trade Agreement (FTA) with Japan which can enhance Bangladesh’s trade policy credibility.

He urged the government to establish a ‘Chief Trade Negotiators Office’ to manage negotiations, coordinate policies and develop capacity.​

 

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EU, Bangladesh launch negotiation for partnership and cooperation agreement

With the goal of finalising a partnership and cooperation agreement (PCA), the first round of top level negotiations between Bangladesh and the EU kicked off at the EU Headquarters in Brussels, Belgium on 10 April 2025.

en.prothomalo.com

EU, Bangladesh launch negotiation for partnership and cooperation agreement
Diplomatic CorrespondentDhaka
Published: 11 Apr 2025, 15: 15

Deputy managing director of the EU’s Asia and Pacific Division at the European External Action Service, Paola Pampaloni and secretary (East) of the Ministry of Foreign Affairs, Md Nazrul Islam. Collected

About 25 years ago, Bangladesh had signed a cooperation agreement with the European Union (EU), which was basically about development cooperation. Now the two parties are going to sign a partnership and cooperation agreement (PCA) to elevate that cooperation to the next level.

With the goal of finalising the agreement, the first round of top level negotiations between Bangladesh and the EU kicked off at the EU headquarters in Brussels, Belgium on Thursday.

Bangladesh officials informed on this matter say that following a bargain the agreement might be finalised for signing within the next one and a half years. They hope that the PCA would be finalised for signing after negotiations by June 2026.

Officials from the foreign affairs ministry say that through signing a legally binding agreement would establish a framework would for Bangladesh’s cooperative relations with the EU.

Ministry officials said that Bangladesh and the EU joined a two-day official talk on the PCA in Brussels yesterday, Thursday. Secretary (East) of the Ministry of Foreign Affairs, Md Nazrul Islam led the Bangladesh delegation to the discussions while the EU side was led by Deputy Managing Director of the EU’s Asia and Pacific Division at the European External Action Service, Paola Pampaloni.

When asked, Nazrul Islam told Prothom Alo that the signing of this agreement will politically elevate Bangladesh’s cooperation with the EU. Once the agreement has been signed, the relations will be fortified even further on various subjects like economy, trade and investment alongside democracy, good governance, security and human rights.

This high-up official from the foreign ministry stated that Dhaka is optimistic about finalising the agreement for signing in June next year after finishing the negotiations. If this goes through, Bangladesh will be the first country in South Asia to have a partnership and cooperation agreement (PCA) with EU.

What’s PCA and how significant

According to the data provided on EU website, PCA is a legally binding agreement that establishes a framework for cooperation between EU and a partner country.

This includes different subjects including political dialogue, peace and security, good governance and human rights, trade, and financial assistance in the EU partner countries made through the partnership and cooperation agreement.

In other words, supporting the democratic and economic development falls under the radius of this cooperation. A powerful open market economy, ensuring the development of a favourable environment for trade and foreign investment and the matter of strengthening trade relations and cooperation in different sectors are also included in this.

PCA elements

There are about 35 sectors including trade, investments, economic cooperation, democracy, good governance, labour rights, inclusion, defence, cyber security, climate change, energy, fisheries, skilled immigration and agriculture under this agreement.

There was a primary discussion on PCA in Dhaka last November. The main discussions began this time. The cooperation agreement Bangladesh already has with the EU will be replaced by PCA in future when it has been signed. Notably, Bangladesh signed the cooperation agreement with EU back in 2001. That agreement included issues like economy, development, good governance and human rights.

Aspiration for political elevation

With the goal of expanding the scope of relations between Bangladesh and the EU, it was decided to launch fresh discussion into EU-Bangladesh Partnership and Cooperation Agreement on 25 October 2023. The then prime minister Sheikh Hasina and European Commission (EC) president Ursula von der Leyen were present in that meeting held in Brussels.

In that continuation, the first round of negotiations on the partnership and cooperation agreement was supposed to begin in September last year. However the EU had suspended the PCA agreement discussions considering the situation at hand centering the anti-discrimination student-public movement in Bangladesh. Later when the EU decided to sign a PCA with the interim government there was an informal discussion in Dhaka last November.​

 

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European firm LDC to expand operations in Bangladesh

The LDC aims to ease up the agricultural supply chain for the small and medium-sized entities by directly importing through its local office.

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European firm LDC to expand operations in Bangladesh
Masud Milad Chattogram
Published: 24 May 2025, 10: 15

Chattogram port Prothom Alo file photo

Louis Dreyfus Company (LDC), an Europe-based merchant and processor of agricultural goods, is planning to expand its operations in Bangladesh by importing products through its local office and supplying them directly to local small and medium-sized enterprises (SMEs), according to sources from its South and South-East Asia in Singapore.

The company took the expansion decision after three years of its operation in Bangladesh from 2022.

Established 174 years ago, LDC operates in more than 100 countries worldwide. It operates in Bangladesh under the name Louis Dreyfus Company Bangladesh Limited. Among the European agricultural commodity providers, it is the first firm to establish a direct operation in Bangladesh.

Now, Bangladesh imports agricultural and agro-processed products worth nearly USD 15 billion annually. The products include food for human consumption, animal feed, and raw materials for export-oriented industries. As demand continues to grow across these sectors, some international firms, including Agrocorp, Swiss Singapore, and ETG, have established offices in Bangladesh. LDC is now following suit by expanding its activities in line with market trends.

In an email conversation with Prothom Alo, Rubens Marques, head of LDC’s South and South-East Asia office, said small and medium-sized processing companies in Bangladesh cannot import large volumes. The LDC aims to ease up the agricultural supply chain for them by directly importing through the local office. In the aftermath, the consumers will get agricultural products at competitive prices throughout the year.

According to the National Board of Revenue (NBR), around 5,500 companies import agricultural products into Bangladesh. Large industrial groups import in bulk by chartering ships, but many small firms do not have this capacity. The LDC is planning to bridge this gap by importing through its local office and distributing within the country.

Globally, the LDC collects and processes agricultural products from key producing regions and exports them across the world. The company operates a full supply chain from sourcing and processing to transportation and delivery. In India, for example, LDC has been operating since 1997 and has an edible oil refinery and a coffee processing plant.

Bangladesh imported agricultural products worth USD 15.06 billion in 2024, where the LDC supplied around USD 1.33 billion. The products supplied by them include wheat, soybean seeds, canola seeds, unrefined sugar, soybean oil, maize, soy cake, cotton, and other commodities. The LDC sourced them from 19 countries, with 65 per cent coming from Brazil, Australia, and the United States. Major Bangladeshi conglomerates such as Meghna Group of Industries (MGI), City Group, TK Group, and Badsha Group are regular clients of the LDC.

When asked about the future plans in Bangladesh, Rubens Marques said his company is planning to increase product-specific supply to the local market, with an initial focus on food grains, oilseeds, and pulses.

Among the agricultural products, cotton is the most imported agricultural product for Bangladesh. According to NBR data, the country imported raw cotton worth USD 3.74 billion in the past year. It takes one to two months to import cotton from countries other than India. Hence, the LDC also has a plan to improve the supply of cotton.

Rubens Marques said they are carrying out a feasibility test on improving the cotton supply chain. The LDC wants to ensure that the capitals of textile factories are not stuck for a long time in the process of raw materials import.

The company considers Bangladesh as a strong and growing market for business, he added.​