The European Union (EU) has urged Bangladesh to swiftly address 60 non-tariff barriers, including expanding the capacity of Chattogram port, simplifying complex licensing procedures in the agriculture and food sectors, eliminating discriminatory tax policies, and modernising the investment climate to meet international standards.
The 27-member bloc believes these barriers are hindering the expansion of trade and investment between Bangladesh and the EU. The issues have been identified across 13 categories in a document prepared in consultation with EU member states and their missions.
In response, the commerce ministry recently asked more than 25 ministries and agencies to submit reports within seven days outlining their positions on the EU’s concerns. Progress was reviewed at a meeting held on Wednesday at the ministry, chaired by Commerce Minister Abdul Muktadir.
Officials at the meeting were instructed to take effective steps to resolve the barriers. Issues linked to fiscal measures will be addressed through the upcoming national budget, while work on regulatory concerns is already underway.
National Board of Revenue (NBR) Chairman Abdur Rahman Khan, who attended the meeting, told TIMES of Bangladesh that many of the EU’s demands relate to regulatory matters, while others concern customs, VAT and taxation.
“We are working to resolve regulatory issues quickly, and those related to taxes will be addressed in the next budget,” he said.
According to the EU document, sectors such as agriculture, food and dairy, and pharmaceuticals face multiple policies and administrative obstacles that significantly impede trade.
The EU stressed the need to modernise Bangladesh’s trade and investment environment in line with global standards, particularly in terms of transparency, competition, efficiency and innovation. It also underscored the importance of maintaining a commitment to fair, transparent and rules-based trade.
The document highlights barriers in areas such as investment, services, customs procedures, public procurement, intellectual property rights, counterfeit goods, double taxation, repatriation of profits and royalties, and ensuring a level playing field.
It also pointed to complexities in licence renewals, restrictions under the Bangladesh Flag Vessels (Protection) Act 2019, and limitations on the use of bonded warehouses and container depots by foreign companies.
Delays in sample testing—taking up to 30 days—along with congestion at Chattogram Port, high storage costs and informal payments, were cited as factors increasing the cost of doing business.
Concerns were also raised over a lack of transparency in public procurement, the preference for US FDA certification over European CE marking, and the requirement for local agents in tender processes, which the EU said could increase corruption risks.
In the agriculture and food sectors, complicated licensing, inconsistent standards and discriminatory tariffs—particularly on imports of whole milk powder—have created obstacles for European exports. The non-acceptance of international test reports and mandatory radiation testing were also identified as market entry barriers.
In the pharmaceutical sector, delays in product registration, non-alignment with international marketing practices and weak cold chain systems remain key challenges.
The EU further noted issues such as arbitrary tax assessments, high advance taxes, discriminatory VAT and complexities surrounding double taxation. Foreign companies also face difficulties in repatriating profits and royalties.
Financial transactions are being affected by bank blacklisting and disputes related to letters of credit, while opaque and politically influenced processes for visas and work permits are discouraging foreign professionals, the EU said.
Distinguished Fellow of the Centre for Policy Dialogue Dr Mustafizur Rahman said it is natural for Bangladesh’s trade and investment partners to raise more demands over time.
“These concerns should not be seen merely as a negotiation tactic for tariff benefits, but rather as an opportunity to strengthen governance, enhance institutional capacity and accelerate reforms to remove trade and investment barriers,” he said.
He added that building a transparent and business-friendly environment would not only help safeguard export benefits but also enhance Bangladesh’s global competitiveness.
Rahman suggested that Bangladesh should adopt a coordinated and prioritised action plan to address the 60 non-tariff barriers raised by the EU.
