Early FTA talks with EU needed to ensure duty-free access: CA
Business Report:
Chief Adviser Professor Muhammad Yunus yesterday called for an early start to Free Trade Agreement (FTA) negotiations with the European Union (EU), stressing the need to safeguard Bangladesh’s trade preferences in its largest export market once the current duty-free access expires in the coming years.
He made the remarks during a courtesy call by Nuria Lopez, chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), at the state guest house Jamuna in the city on Sunday. EU Ambassador Michael Miller was also present.
During the meeting, they discussed the need to accelerate European investment in Bangladesh, how to ensure smooth trade relations between Bangladesh and the EU, and the need for further reforms to improve the country’s business climate.
They also discussed the upcoming elections and the deployment of international observers to monitor the polls.
Professor Yunus said the interim government has recently concluded an Economic Partnership Agreement (EPA) with Japan, paving the way for duty-free access for more than 7,300 Bangladeshi products to the world’s fourth-largest economy.
He added that Bangladesh is preparing to hold similar negotiations with other countries, including the European Union, to ensure continued duty-free access for its products-particularly ready-made garments-to the EU market for the foreseeable future.
“The EPA with Japan has opened doors for us. It gives renewed hope to our export items. We definitely hope to sign an FTA with the EU to expand our market,” the Chief Adviser said. EuroCham Chairperson Nuria Lopez said Bangladesh needs to begin FTA negotiations urgently, as the country may lose its existing trade preferences in the EU-its largest export destination-after graduating from Least Developed Country (LDC) status.
She noted that an FTA would attract more European investment to Bangladesh, create jobs, and boost exports to advanced Western markets. Lopez pointed out that India is signing an FTA with the EU, while Vietnam already has such an agreement, allowing both middle-income countries preferential access to the European market.
“We are advocating for an FTA. I will go to Europe to encourage private companies to invest in Bangladesh,” she said.
EU Ambassador Michael Miller said that the commercial relationship with Bangladesh will evolve after graduation but not before 2029.
He underlined the EU’s strong interest to bring European investment and technology to the country – an important market with a population of nearly 200 million – and spoke about the EU readiness to organise an EU-Bangladesh Business Forum in 2026.
