Chief Adviser Muhammad Yunus on Sunday called for the early launch of Free Trade Agreement (FTA) negotiations with the European Union (EU) to protect Bangladesh’s duty-free access to its largest export market once existing trade preferences expire in the coming years.
He made the call during a courtesy meeting with Nuria Lopez, chairperson of the European Chamber of Commerce in Bangladesh EuroCham, at the State Guest House Jamuna in the capital. European Union Ambassador to Bangladesh Michael Miller also attended the meeting.
The discussion focused on accelerating European investment in Bangladesh, ensuring smooth bilateral trade relations, and advancing reforms to improve the business climate. The participants also exchanged views on the upcoming elections and the deployment of international observers.
Yunus said the interim government has recently concluded an Economic Partnership Agreement with Japan, securing duty-free access for more than 7,300 Bangladeshi products to the world’s fourth-largest economy.
He said Bangladesh is preparing to pursue similar negotiations with other partners, including the European Union, to ensure continued market access, particularly for ready-made garments.
The agreement with Japan has created fresh opportunities for Bangladeshi exports and strengthened confidence in the country’s trade prospects, he said. He added that Bangladesh now hopes to move forward with an FTA with the EU to expand its export market further.
Nuria Lopez said Bangladesh needs to begin FTA negotiations urgently, as it may lose its existing trade preferences in the EU after graduating from least developed country status. She said an agreement would attract more European investment, create jobs, and boost exports to developed markets.
She noted that India is moving towards an FTA with the EU, while Vietnam already enjoys such an arrangement, allowing both middle-income countries preferential access to the European market. She said EuroCham is actively advocating for an FTA and that she plans to encourage European companies to invest in Bangladesh.
EU Ambassador Michael Miller said the commercial relationship between Bangladesh and the EU will evolve after graduation, but not before 2029. He said the EU remains keen to bring European investment and technology to Bangladesh, describing the country as an important market with a population of nearly 200 million. He also said the EU is ready to organise an EU-Bangladesh Business Forum in 2026.
He stressed the need for early political signals to assure European companies that they will enjoy a level playing field in Bangladesh.
Yunus also highlighted opportunities for relocating factories to Bangladesh, citing the availability of skilled labour at competitive costs. He said the government is developing a free trade zone with the aim of turning Bangladesh into a manufacturing hub for global businesses and attracting greater European investment.
He welcomed the European Union’s decision to deploy a large team of election observers for the upcoming general elections and referendum, calling it a strong vote of confidence in the country’s democratic renewal. He said the overall election campaign environment appeared positive.
SDG Coordinator and Senior Secretary Lamiya Morshed were also present at the meeting.
