EU ready to begin Bangladesh FTA talks as LDC graduation nears: ambassador

Ambassador Michael Miller says the bloc has proposed launching exploratory talks on a free trade agreement

The European Union is ready to begin exploratory discussions on a Free Trade Agreement (FTA) with Bangladesh as the country prepares to graduate from the Least Developed Country category, EU Ambassador Michael Miller has said.

He also stressed the need for Bangladesh to take swift and targeted measures to remove non-tariff barriers (NTBs), further improve the business environment and ensure a smooth continuation of trade benefits in the post-LDC period.

The remarks came after the ambassador met Commerce Minister Khandakar Abdul Muktadir at the Planning Commission in Dhaka’s Agargaon on Thursday, according to a commerce ministry media statement.

Bangladesh began its graduation process from the LDC category in 2018 and was originally scheduled to leave the list on Nov 24, 2026, after receiving a two-year extension because of the COVID-19 pandemic.

However, the BNP-led government requested the United Nations on Feb 18, the day after assuming office, to extend the transition period by another three years.

On Apr 6, Prime Minister Tarique Rahman also wrote to the UN secretary-general seeking his personal support for the request.

In early June, the finance ministry said the UN Committee for Development Policy had responded positively to the proposal.

As an LDC, Bangladesh currently enjoys duty-free and quota-free access to the European market.

Those preferential trade benefits are expected to end after graduation unless alternative arrangements are secured.

Miller said Bangladesh-EU relations have reached "an important turning point" in light of the country's graduation.

He said meaningful progress in the FTA negotiations would be possible if Bangladesh completed the necessary reforms and preparations on time.

The commerce minister said the government is working sincerely to address the EU's concerns and has already made progress in several areas.

He said the government is implementing its political commitments while creating an environment that encourages foreign investment, reduces trade barriers and strengthens international confidence in the economy.

"The government is giving the highest priority to demonstrating that Bangladesh is fully capable of honouring its commitments to international partners," he said.

The minister also expressed confidence that the country would create a more favourable investment climate by removing trade barriers, resolving the energy crisis and placing state-owned industries under efficient private management.