Dhaka is seeking to balance the competing business interests of the European Union and the United States as both aim to expand trade and investment ties with Bangladesh, a half-trillion-dollar economy.
Senior envoys from Brussels and Washington separately met Commerce Minister Khandakar Abdul Moktadir on Sunday and Monday, with both sides stressing the need for greater transparency and a competitive business environment.
The European Union pressed for a transparent, stable and competitive business environment, including greater transparency in public procurement. Brussels also wants Bangladesh to remove non-tariff barriers and has highlighted the purchase of Airbus aircraft as part of broader trade and economic cooperation.
The EU has identified 68 non-tariff barriers affecting European businesses in Bangladesh. Dhaka has already addressed 48 and is working to resolve the remaining issues.
Preparatory discussions on a formal Free Trade Agreement (FTA) and an Investment Protection Agreement with the EU, Bangladesh’s largest export market, are also expected to begin soon.
EU Ambassador Michael Miller has urged Dhaka to accelerate discussions on the proposed Airbus aircraft purchase, linking the deal to wider aviation and trade cooperation.
Washington, meanwhile, is pushing for transparency and open competition in major infrastructure projects.
US Ambassador Brent T Christensen raised the issue while discussing the floating LNG terminal project with the commerce minister. He said transparent and competitive processes for major infrastructure projects would strengthen foreign investors’ confidence.
Highlighting strong interest among US companies in Bangladesh, Christensen stressed the need to ensure fair opportunities for all investors.
The US envoy also called for changes to some provisions of Bangladesh’s import policy, according to officials familiar with the meeting.
Diplomatic sources said Dhaka is carefully managing relations with both Washington and Brussels, as the two are among Bangladesh’s most important economic and development partners.
“The approaches of the EU and US are different and the response of the government to each of them is different,” an official familiar with the matter told TIMES.
The United States has adopted a tougher approach, including tariffs and other trade measures, while negotiating with Dhaka, the official said. The EU, meanwhile, has continued negotiations with Bangladesh on trade and investment issues.
The EU-Bangladesh relationship is also entering a new phase, with initialling of the Partnership and Cooperation Agreement completed and FTA negotiations expected to begin soon.
European Commission President Ursula von der Leyen has invited Prime Minister Tarique Rahman to deliver a keynote address at the Global Gateway Forum 2027.
Another official said balancing relations with the two major trading partners was complicated because commercial decisions often benefit one supplier while reducing opportunities for another.
“If Bangladesh buys from Boeing, it will be difficult for them to buy from Airbus as Dhaka has financial constraints. Similarly, for food and energy, if it buys from Washington, European countries will not be able to sell their products,” he said.
Both the EU and US are important economic and development partners for Bangladesh, the official said, adding that Dhaka would need to manage their competing interests prudently.
The challenge for Bangladesh is to expand trade and attract investment from both sides without allowing commercial competition between Washington and Brussels to become a diplomatic liability.
