Dhaka urged to fast-track EU FTA as investor concerns mount
A European business leader has called for urgent action to secure a free trade agreement (FTA) with the European Union, warning that delays could undermine Bangladesh’s investment outlook and export competitiveness ahead of its LDC graduation.
The concern was voiced at a policy dialogue jointly organised by the Metropolitan Chamber of Commerce and Industry, Dhaka and Policy Exchange Bangladesh in Gulshan yesterday, where speakers highlighted market access as a critical gap in the country’s economic strategy.
The event was attended by special guest Md Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Policy Exchange Bangladesh Chairman and CEO Dr M Masrur Reaz presented the keynote on Improving the Investment Climate: Why It’s Critical for the New Government Priorities and the Upcoming National Budget.’
The programme began with a welcome address by MCCI Secretary General Farooq Ahmed.
Panel speakers included EuroCham Chairperson Nuria López, corporate lawyer Barrister Margub Kabir, Head of Chambers at Margub Kabir & Associates, and Zinnia Huq, Chief Financial Officer (CFO) of Unilever Bangladesh.
Nuria Lopez, Chairperson of the European Union Chamber of Commerce in Bangladesh (EuroCham), stressed that the absence of an FTA with Bangladesh’s largest export destination is already weighing on investor confidence.
“Do we have a free trade agreement with our major customer at this moment – the European Union? No,” she said. “And we are in a region where Vietnam and India have already secured such agreements.”
She warned that without preferential access to the EU market, Bangladesh risks falling behind regional competitors that offer greater certainty to investors.
“We need to have, we must have, we must start right now an FTA,” Lopez said. “Because if we don’t have free trade access to our largest market, we don’t have a horizon to invest.”
Drawing on her own experience, Lopez said uncertainty over future market access is already affecting business decisions.
“I have recently started a new business in the agro-processing sector, but I am uncertain about the future. I do not know whether I will be able to export to Europe on equal terms with competitors from countries that already enjoy free market access,” she said.
She emphasised that predictability is key to attracting long-term investment, which Bangladesh currently lacks.
“We don’t have predictability. We don’t know what’s going to happen in the future,” she said, questioning whether the government has a clear and investor-friendly vision.
