Bangladesh Resolves 48 of 61 EU Identified Trade Barriers
Bangladesh has resolved 48 of the 61 non-tariff barriers identified by the European Union (EU) in trade with it. Efforts are underway to quickly remove the remaining barriers, the Commerce Minister said.
The information was shared with journalists at a joint briefing after a high-level meeting with ambassadors and representatives of 27 EU countries at the Ministry of Commerce at the Secretariat yesterday. Commerce Minister Khandaker Abdul Muktadir presided over the meeting. Finance and Planning Advisor Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaid, State Minister for Planning Jonayed Abdur Rahim Saki and EU Ambassador Michael Miller were present at the meeting.
The Commerce Minister said that after taking office last March, a delegation led by the EU Ambassador highlighted various obstacles existing in conducting trade with Bangladesh. After that, work was started to resolve these problems with the National Board of Revenue, the Ministry of Agriculture, Fisheries and Livestock, and the Ministry of Shipping, among other relevant agencies. 48 problems have been resolved in the shortest possible time.
One of the obstacles resolved was the complexity of renewing permits for 100% foreign-owned goods transport and supply companies. The annual limit for the import of commercial samples has also been increased. Until now, this limit was equivalent to 10 thousand US dollars. It has now been increased to 20 thousand dollars.
The customs clearance complications of the product identification smart cards used to identify the source and movement of exported goods have also been eliminated. Steps have also been taken to determine the reasonable price of these products. The EU is Bangladesh’s largest export market. Noting this, the Commerce Minister said that these initiatives have been taken to facilitate trade with the EU. The remaining obstacles are also in the process of being resolved quickly.
The Commerce Minister said that technical discussions on a free trade and investment protection agreement with the EU will begin this week. According to him, such an agreement could create new opportunities in Bangladesh’s export sector. Especially, it would increase the opportunities for market expansion of various industries including ready-made garments, agricultural product processing, and pharmaceuticals. At the same time, if trade barriers are reduced, investment and technical cooperation in Bangladesh could also increase.
Bangladesh seeks EU support to delay transition Bangladesh’s trade minister said it is important to maintain trade benefits in the EU market after graduation from the Least Developed Country (LDC) list. Therefore, the preparatory negotiations for a free trade agreement are not only important for increasing exports; but also for determining the framework of Bangladesh’s economic relations with Europe in the future.
The Commerce Minister also spoke about the initiative to postpone the deadline for graduation from LDC by three years. He said that the United Nations Committee on Development Policy (CDP) and the Economic and Social Council have made positive recommendations. The matter will be presented for a final decision at the 81st session of the United Nations General Assembly. The Commerce Minister commented that the strong support of the EU in this regard is important for Bangladesh.
When asked about importing goods from the United States, the Commerce Minister said that Bangladesh always takes import decisions considering national interests, economic rationality and the needs of the people. In the case of liquefied natural gas (LNG) and food grains, the government procurement committee approves the decision after analyzing competitive prices, product quality and wastage rates, he said. The Commerce Minister said that Bangladesh’s trade policy is not guided by the influence of any specific country. The country’s economic interests and the welfare of the people are the main basis of all decisions.
EU Ambassador on FTA negotiations
EU Ambassador Michael Miller said that the European Commission has responded positively to the formal proposal for a free trade and investment protection agreement from the Bangladesh government. Technical discussions between the two sides on the matter could begin this week, subject to the necessary approvals from EU member states.
Mr. Miller said that it is important to ensure a transparent, stable and competitive business environment to deepen economic cooperation between the two sides. If there is transparency and fair competition in the government procurement process, both Bangladesh and the EU will benefit. Michael Miller also expressed optimism that the talks on purchasing Airbus aircraft will be quickly advanced as part of increasing aviation and trade cooperation between Bangladesh and the EU. At the same time, he called for the issue to be considered ‘very seriously’. He said that Airbus has an ‘incredibly competitive’ proposal and Bangladesh should seriously consider it. Airbus is a European aircraft manufacturer.
Stressing the need to ensure a level playing field for all companies in government procurement, the EU ambassador said that any procurement decision should be made on the basis of commercial merit. This would allow European companies to compete on an equal footing with companies from other countries.
According to sources, on February 9, three days before the 13th parliamentary elections, the interim government led by Muhammad Yunus signed the Agreement on Reciprocal Trade (ART) with the United States. The agreement has 131 conditions for Bangladesh and six conditions for the United States. The much-discussed trade agreement signed between Bangladesh and the United States during the interim government to avoid Mr. Trump’s additional supplementary tariffs has sparked various discussions and criticisms.
Amidst various discussions and criticisms, the BNP government has agreed to buy LNG from the United States for a long term. In addition, on April 30, the state-owned flag carrier Biman Bangladesh Airlines signed an agreement with the American company Boeing to buy 14 aircraft. The cost of buying these aircraft will be 3.7 billion dollars or 45,408 crore taka (1 dollar is 122 taka and 73 paisa). Boeing will supply these aircraft to Biman in stages between 2031 and 2035. In addition, Bangladesh has agreed to buy more Boeing aircraft from the United States as part of the new agreement. And so, the US President’s special envoy Sergio Gore recently highlighted the sale of Boeing aircraft to Bangladesh in an X Post. There, he talked about a new agreement. Gore said that another extraordinary agreement was reached between President Mr. Trump and the Prime Minister of Bangladesh this week. Under this, Bangladesh has promised to spend billions of dollars, which is much more than their initial purchase order. Then, US President Donald Trump wrote a letter to Prime Minister Tarique Rahman thanking him for agreeing to buy Boeing.
Mr. Trump said, “Boeing will not let you down, and I will not forget this. Thank you very much for your attention to this matter. I look forward to meeting you in the near future, not too long. Of course, Prime Minister Tarique Rahman is visiting the United States this month.”
US President Donald Trump has already expressed his hope of meeting the Prime Minister and said that he will discuss the purchase of Boeing. The Prime Minister will be in the United States on September 21. The relevant parties believe that this visit will increase the prospects of US investment in Bangladesh and Bangladesh’s acceptance in the international arena. After the Prime Minister returns from the United States, the economy will gain momentum. Meanwhile, development partners China, Japan, Korea, Saudi Arabia, Turkey and other countries are eager to develop relations with Prime Minister Tarique Rahman and invest in him.
Meanwhile, yesterday, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said that Bangladesh is purchasing 14 Boeing aircraft in response to the request of US President Donald Trump, and it has recently been learned that Bangladesh plans to procure 11 more aircraft.
