[🇧🇩] Bangladesh and European Union

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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.​

 

[Saif]

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.

en.prothomalo.com

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.​

 

[Saif]

EU wants Bangladesh to import more to reduce trade gap

European businesses and diplomats have urged Bangladesh to increase imports from the European Union (EU) to help narrow the bloc’s large trade deficit with the country.

www.thedailystar.net

EU wants Bangladesh to import more to reduce trade gap

Photo: Standard Chartered Bank

European businesses and diplomats have urged Bangladesh to increase imports from the European Union (EU) to help narrow the bloc's large trade deficit with the country.

The call comes as the issue has gained fresh relevance after Bangladesh committed to reducing its trade gap with the United States under the reciprocal tariff deal.

Speaking at a joint dialogue on business climate at the Bangladesh Investment Development Authority (Bida) office in Dhaka on Monday, they also called on Bangladesh to continue strong reforms in key areas, as they want to deepen trade ties with the country.

Officials and business representatives said EU companies were pushing for a more balanced trading relationship as Bangladesh has already promised the US administration that it would buy more American goods, including soybeans, wheat, aircraft, LNG and machinery, in exchange for comparatively lower reciprocal tariffs of 20 percent.

Against this backdrop, EU missions and businesses are seeking similar commitments from Bangladesh, arguing that imports of European machinery, chemicals and other products must rise if the existing imbalance is to be addressed.

As a bloc, the EU is Bangladesh's largest merchandise export destination. Total trade in goods stood at €22.2 billion in 2024, with an EU deficit of €17.5 billion, according to European Commission data.

Garments and textiles accounted for nearly 94 percent of the EU's imports from Bangladesh that year, while the bloc's exports to Bangladesh were led by machinery and appliances (35 percent) and chemical products (23 percent).

In services, total trade amounted to €2 billion in 2023, with the EU holding a surplus of €0.8 billion. Combined goods and services trade reached €23.9 billion in 2023.

At the dialogue, EuroCham Bangladesh Chairperson Nuria Lopez said European businesses and diplomatic missions shared a common goal of expanding foreign direct investment (FDI) flows and addressing the trade deficit as Bangladesh prepares to leave the least developed country (LDC) group next year.

She emphasised the need for reforms across customs, logistics, standards, regulatory enforcement and import procedures, pointing to case studies presented during the meeting.

Representatives of the EU private sector noted that regulatory predictability, transparency and digitalisation are essential if Bangladesh is to attract quality European investment and emerge as a competitive manufacturing hub, according to a EuroCham Bangladesh statement.

Several European envoys echoed these concerns.

Dutch Ambassador Joris van Bommel called for predictable, consistent and transparent regulation alongside a "modern image" of Bangladesh to unlock opportunities in water, agriculture and logistics.

Danish Ambassador Christian Brix Moller highlighted lessons from G2G and Public-Private Partnership (PPP) projects, stressing stronger governance safeguards, quicker resolution of regulatory delays and timely approvals.

Italian Ambassador Antonio Alessandro pointed to growth potential in sectors such as ceramics, leather and design, underscoring the importance of innovation, technology transfer and engaging small and medium enterprises.

Spanish Ambassador Gabriel Sistiaga Ochoa de Chinchetru described the EU as a reliable partner of Bangladesh and called for stability, rule of law, and fair competition to deepen ties.

Swedish Ambassador Nicolas Weeks referenced Sweden's deep links with Bangladesh's garment sector and its push for sustainable fashion, calling for clearer regulations.

French Ambassador Jean-Marc Séré-Charlet highlighted the long-term advantages of partnering with Europe and urged stronger action on good governance and profit repatriation to unlock untapped trade and FDI potential.

German Acting Ambassador Anja Kersten welcomed ongoing reforms but stressed consistent implementation, improved vocational training, an updated agreement for the avoidance of double taxation and efforts to strengthen Bangladesh's global image.

From the government side, Chittagong Port Authority Chairman Rear Admiral SM Moniruzzaman detailed ongoing modernisation initiatives, including digitalisation, the Bay Terminal and the Laldia project to accommodate larger vessels and support 24/7 operations.

Bida Executive Chairman Ashik Chowdhury said structural reforms, better investor grievance resolution and annual "result cards" were being prioritised, adding that Bangladesh aims to bring more European companies to set up local and regional operations.

Lutfey Siddiqi, special envoy on international affairs to the chief adviser, stressed the importance of a clear reform roadmap and early engagement with the EU ahead of Bangladesh's LDC graduation.​