EU
EU announces € 3m for Rohingyas in Bhasan Char
The European Union (EU) has announced additional Euro 3 million support for the Rohingyas in Bhasan Char.
EU Commissioner for Home Affairs YIva Johansson announced the assistance at an event at the EU Embassy in the city’s Gulshan on Thursday.
Ylva Johansson arrived in Dhaka this morning on a two-day official visit to discuss the issues of mutual interest with special focus on security matters.
Read more: Dhaka seeks proactive role from Thailand, ASEAN to repatriate Rohingya
At the event, State Minister for Disaster Management Enamur Rahman said, “We are happy to hear that the EU will provide € 3m as humanitarian aid for the Rohingyas in Bhasan Char. They also helped the Rohingyas in Cox's Bazar. The Government of Bangladesh expressed gratitude to the European Union for the support.”
Enamur said the Bangladesh government is trying to ensure all kinds of humanitarian assistance to the Rohingyas.
The nutrition situation among the Rohingyas in Cox's Bazar and Bhasan Char has improved a lot, the state minister said adding violence among the Rohingyas has already been brought under control.
Read more: Elaborate scheme to provide Rohingya with NIDs at Tk 1 lakh each busted
Bangladesh is currently hosting over 1.1 million Rohingyas in camps in Cox's Bazar and Bhasan Char. Most of them have come to this country since August 25, 2017, when the Myanmar military launched a brutal offensive targeting the Muslim ethnic minorities.
Bangladesh has potential to increase trade with EU: Charles Whiteley
Bangladesh has the potential to increase trade with the European Union (EU) countries, Charles Whiteley, ambassador and head of the Delegation of the EU to the country, said Thursday.
He paid a courtesy call on Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Md Jashim Uddin in Dhaka Thursday.
They discussed trade and investment between Bangladesh and EU countries.
Read: FBCCI signs MoU with Greater New York Chamber of Commerce and Industry
Jasim hoped for enhanced cooperation between FBCCI and different trade bodies of the EU region.
Bernd Spanier, deputy head of mission, FBCCI Vice-President Salahuddin Alamgir; directors Syed Sadat Almas Kabir, Nadia Binte Amin, and Secretary General Mohammad Mahfuzul Hoque were present at the meeting.
Bangladesh considers labour rights related recommendations from US, EU, ILO with due importance: PM's Adviser
Prime Minister's Adviser for Private Industry and Investment Salman F. Rahman has said Bangladesh considers the recommendations of the United States of America, European Union and the International Labor Organization (ILO) on labor rights with due importance.
Speaking at the virtual meeting of the US-Bangladesh labor working group on Thursday, Rahman detailed the steps taken by the current government in the labor sector.
The Prime Minister's Adviser for Private Industry and Investment and US Under Secretary for Economic Growth, Energy, and the Environment Jose W. Fernandez led the Bangladesh and US delegations respectively at the inaugural meeting of the working group.
US team leader Fernandez praised the steps taken to develop the labour sector in Bangladesh and called for the full implementation of the recommendations of the International Labor Organization, said the Ministry of Foreign Affairs on Friday.
He pledged to provide necessary cooperation and work together for the further development of the labour sector of Bangladesh.
Bangladesh and the US discussed "collaboration and assistance" to Bangladesh as it takes further steps to implement the requirements developed by Bangladesh for its International Labor Organization roadmap and adhere to internationally recognized labor rights.
Europe sees fastest pace of rate hikes since euro launched
The European Central Bank piled on another outsized interest rate hike aimed at squelching out-of-control inflation, increasing rates at the fastest pace in the euro currency’s history and underscoring the bank’s determination to control prices despite the threat of recession.
The 25-member governing council raised its interest rate benchmarks by three-quarters of a percentage point at a meeting Thursday in Frankfurt, matching its record increase from last month and joining the U.S. Federal Reserve in making a series of rapid hikes to tackle soaring consumer prices.
ECB President Christine Lagarde acknowledged the risk is growing that the 19-country eurozone may plunge into recession but says “inflation remains far too high” and will stay high for an extended period, so the bank expects to keep hiking.
“We are not done yet. There is more ground to cover,” she told reporters, despite bank expectations that the economy will weaken the rest of this year and beginning of next.
“In the present state of uncertainty, with the likelihood of recession looming much more on the horizon ... everyone has to do their job,” Lagarde said. “Our job is price stability. This is our primary mandate, and we are riveted to that.”
Central banks around the world are rapidly raising interest rates that steer the cost of credit for businesses and consumers. Their goal is to halt galloping inflation fueled by high energy prices tied to Russia’s war in Ukraine, post-pandemic supply bottlenecks, and reviving demand for goods and services after COVID-19 restrictions eased. The Fed raised rates by three-quarters of a point for the third straight time last month.
Quarter-point increases have usually been the norm for central banks. But that was before inflation spiked to 9.9% in the eurozone, fueled by higher prices for natural gas and electricity after Russia slashed gas supplies during the war in Ukraine.
Read: Soaring inflation threatens to unleash political turmoil across Europe
“A long-lasting war in Ukraine remains a significant risk,” Lagarde said. “Confidence could deteriorate further and supply side constraints could worsen again. Energy and food costs could also remain persistently higher than expected. A weakening world economy could be an additional drag on growth in the euro area.”
Inflation robs consumers of purchasing power, leading many economists to pencil in a recession for the end of this year and the beginning of next year in the 19 countries that use the euro as their currency. While inflation in the U.S. is near 40-year highs of 8.2%, fueled in part by more pandemic support spending than in Europe, the American economy grew in the third quarter after shrinking in the first half of 2022.
The ECB has now raised rates by a full 2 percentage points in just three months, distance that took 18 months to cover during its last extended hiking phase in 2005-2007 and 17 months in 1999-2000. The benchmark for short-term lending to banks now stands at 2%, a level last seen in March 2009.
The next meeting in December may see a smaller rate increase, analysts say.
“We expect the pace of hiking to slow, given that the window of opportunity to raise interest rates is narrowing with a recession in the euro area looming,” said Nicolas Sopel, senior macro strategist at Quintet Private Bank.
Higher rates can control inflation by making it more expensive to borrow, spend and invest, lowering demand for goods. But the effort to raise rates also has raised concerns about their impact on economic growth and on markets for stocks and bonds.
To sop up economic stimulus efforts that have outlived their purpose now that rates are rising, Lagarde encouraged banks to repay the cheap, long-term loans they received from the ECB to help them keep lending to businesses. The central bank raised the interest rates on the loans and said it would let banks voluntarily repay the money.
Another potentially fraught issue in drawing down stimulus without triggering turmoil in nervous markets is what to do with the bank’s 4.9 trillion euro ($4.9 trillion) pile of bonds bought under earlier efforts to lower market borrowing costs. That will be not be outlined until the December meeting, Lagarde said.
Read: EU employed over 1.3 million people in sports sector in 2021
For now, the bank is maintaining the size of its holdings by using money from maturing bonds to buy new ones. Because the ECB is such a large bondholder, shrinking the bond pile could roil bond markets and make government borrowing costs more expensive.
The risks of bond market trouble were illustrated last month when then-U.K. Prime Minister Liz Truss announced tax cuts and spending increases that raised questions about state finances, triggering a sudden selloff in British government bonds and forcing her resign after 45 days in office.
Bond market turbulence also threatened to break up the eurozone during its 2010-2015 debt crisis. Now, borrowing costs for indebted eurozone governments such as Italy have risen along with ECB interest rates.
The euro flirted below parity with the dollar after the ECB decision and remains near its lowest levels in 20 years. A weaker euro worsens inflation by raising the price of imported goods.
Reasons for the drop in the exchange rate include higher U.S. interest rates that attract money into investments priced in dollars and, more broadly, the dwindling prospects for Europe’s economy.
GSP+ in EU market next big factor for Bangladesh’s economic growth: Envoy
Ambassador and Head of Delegation of the European Union (EU) to Bangladesh Charles Whiteley on Tuesday said preparing for quick access to GSP Plus in the EU market is the next big factor for Bangladesh’s future economic development.
The graduation from LDC status in 2026 would also mean graduation from the current Everything but Arms (EBA) unilateral trade preference given to Bangladesh by the EU, which is Bangladesh’s largest export destination.
“The graduation would imply a substantial trade loss and serious shock to the country’s GDP, which could be mitigated through inclusion in the GSP+ arrangement,” said the EU envoy while speaking at a programme hosted by International Business Forum of Bangladesh (IBFB) at a city hotel.
Read:Special economic zone not enough to attract best investors: US Envoy
US Ambassador to Bangladesh Peter Haas, founding President of IBFB Mahmudul Islam Chowdhury, Chairman of Policy Research Institute of Bnagladesh Dr Zaidi Sattar, IBFB President Humayun Rashid and its Vice President MS Siddiqui also spoke.
Attracting foreign direct investment and technological know-hows would be key to reduce dependency on single basket RMG exports and move towards industrial diversification, said ambassador Whiteley.
For this to happen, he said, a level playing field for both local and foreign sectors is necessary. “Addressing the woes of existing foreign investors is also important. We continue to engage with the government authorities in this area in our bilateral business dialogue.”
Read BGMEA seeks 10-yr extension of GSP in Swiss market
There are some quite stringent requirements for GSP Plus accession and the great thing is Bangladesh has already ratified the 32 conventions that are now required for GSP Plus membership, said ambassador Whiteley.
“Now the next stage is implementation. This in particular refers to implementing the National Action Plan for the Labour Sector, which the Government has agreed with the EU,” he said.
EU’s proposed carbon tariff may affect Bangladesh’s exports
Experts say that the European Union’s Carbon Border Adjustment Mechanism (CBAM) through supply chain regulations and trade measures would be a game changer in tackling emissions.
The EU is set to introduce the CBAM, which in effect will make use of trade policy in an unprecedented manner to tackle carbon emissions, they said.
Dr Mohammad Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID), told UNB the EU has been maintaining an emission trading system (ETS) to reduce greenhouse gas emissions of high carbon-emitting sectors.
Also read: Power Division, USAID sign agreement to cut carbon emissions.
Carbon price under the EU-ETS reached a record high at EUR 98 per tonne of CO2 on 18 August 2022. Since then it has somewhat fallen and fluctuates around EUR 70, which will be effective in trade in the EU market after 2026, he said.
Dr Razzaque, also an international trade expert, said the embedded carbon content in imports will be priced equivalent to the price of CO2 faced by EU domestic firms under ETS.
The transition phase is 2023-2025 -in this period importers will have to report emissions embedded in their goods without paying any charge, he pointed out.
Also read: IFC-led PaCT helped factories cut carbon and water footprints: BGMEA
The EU and EU parliament is working on such regulation to bring about execution by 2026, which may be shifted to 2027. Once in operation, the importers will have to pay for embedded emissions, buying CBAM certificates, Dr Razzaque said.
If a non-EU exporter establishes a carbon market, the corresponding cost will be deducted from total CBAM charges, he said.
According to the European Commission, the CBAM will initially apply only to a select number of goods at a high risk of carbon leakage, viz., cement, iron and steel, aluminum, fertilizers, and electricity, and will be operational from January 2023, said Md Jillur Rahman, Assistant Professor, Economics Department, Jagannath University.
Read Summit, JERA to collaborate for developing a carbon neutral roadmap
He said that both the European Council and Parliament have adopted their positions on the Commission's proposal for a CBAM.
“The European Parliament proposes a gradual implementation of the CBAM beginning in 2027, and full implementation beginning in 2032 when the free allowances are completely phased out,” Jillur added, who is doing research on CBAM.
The Parliament proposes to broaden the scope of sectoral coverage to include organic chemicals, plastics, hydrogen, and ammonia. Gradually the coverage should be extended to cover all sectors under the EU ETS, he said.
Read MVCs' CSOs demand end to carbon emission instead of 'net-zero' target
Jillur said, the European Parliament, Council, and Commission will now engage in a trialogue (three-way dialogue) and discuss the differing viewpoints of the three institutions. The political process may be completed by the end of 2022 to adopt the final CBAM regulation for the Union.
Professor Abu Eusuf, department of development studies, Dhaka University, said many countries, including India, Vietnam, and China are taking measures to reduce carbon emissions to address the negative impact of climate change in line with the Paris Agreement.
“Bangladesh in its updated Nationally Determined Contribution (NDC) commits to unconditionally reduce greenhouse gas emissions by 6.73 percent (27.56 MtCO2e) from the business-as-usual scenario by 2030,” he said.
Read Climate change to ultimately cost $100,000 per ton of carbon
Prof Eusuf said that subject to technology and know-how transfer, and finance and investment support from the international community, Bangladesh intends to reduce GHS emissions by an additional 15.12 percent (61.9 MtCO2e).
“Bangladesh’s NDC commitments and actions for reducing carbon emissions appear to be much less ambitious compared to other comparable countries. China commits to reducing carbon dioxide emissions per unit of GDP by 60 to 65 percent (from the 2005 level) by 2030, while India intends to do the same from 33 to 35 percent,” he added.
The experts said Bangladesh’s major competitors have either already established or are in the process of developing carbon markets locally.
Read Environmental degradation is a burning issue, but its impact is not yet measured: Statistics Secretary
China launched its carbon market in 2021; Vietnam and India are in the process of establishing their internal carbon market. Vietnam wants to formally launch its carbon market in 2028.
The 8th Five Year Plan of Bangladesh aims to introduce green taxation on the consumption of fossil fuels, but it is not clear yet how this will be implemented.
However, no progress has been made so far. Therefore, the CBAM can disproportionately affect Bangladesh relative to other competitors.
Read Govt committed to protect ozone layer: Environment Minister
EU employed over 1.3 million people in sports sector in 2021
The European Union (EU) created more than 1.37 million jobs in sports, 0.7 percent of its total employment, in 2021.
The number of people working in sports in the EU recovered after falling during the height of the Covid-19 pandemic lockdowns (1.37 million in 2019; 1.31 million in 2020), according to the EU's statistical office Eurostat.
Employment in sports includes sports-related occupations (professional athletes, professional coaches in fitness centres), non-sports occupations (receptionists in fitness centres), and sports-related jobs outside the sports sector (school sports instructors).
In recent years, several European plans and programmes gave sports a significant profile.
The EU countries with the highest share of people working in sports were Sweden (1.4 percent of total employment), Finland (1.3 percent), Spain and France (1.1 percent).
European Union plans to ban products made with forced labour
The European Union unveiled plans Wednesday to ban products made with forced labour, in an effort to crack down on a modern-day form of slavery that a UN agency estimated affects more than 27 million people worldwide.
The European Commission, which proposes EU laws, said the policy would remove from the 27-nation bloc’s markets all products made with forced labour. It would also stop them from being made in the world’s biggest trading bloc or shipped through it.
The move does not target specific companies, industries or countries.
“Our aim is to eliminate all products made with forced labour from the EU market, irrespective of where they have been made. Our ban will apply to domestic products, exports and imports alike,” commission Executive Vice-President Valdis Dombrovskis said.
The EU’s executive arm defines forced labour as a situation where a person is coerced to work through violence or intimidation, or in more indirect ways by having their debt manipulated, their identity papers stolen or being threatened with denunciation to immigration authorities.
Under the plans, the commission would set up and operate a public database containing information about suspect products and practices. EU countries would designate an authority to enforce the rules, and customs officers would have responsibility for ensuring compliance at the bloc’s borders.
The aim is to focus on high-risk products. Investigations would be launched if national authorities believe forced labour may have been used. Suspected cases involving bigger operators that make the most products would be the preferred target, rather than small businesses.
If a product made with forced labour is already sold in the EU, the company involved would be required to pull it off the market and dispose of it. If the company refuses, it would face penalties under the law of the country it operates in.
Europe’s main union umbrella organization, the European Trade Union Confederation, welcomed the plans.
“Many of the people in forced labour are manufacturing goods destined for sale in Europe, so a properly enforced ban should cripple the profits of the criminals behind these violations,” ETUC Deputy General-Secretary Claes-Mikael Stahl said.
The International Labour Organization estimated that in 2021 around 27.6 million people were forced to work on any given day, including 3.3 million children. Women and girls accounted for 11.8 million of that number.
Textiles, mining and agriculture are among the industries most notorious for the practice.
The commission’s proposal must now be debated by the EU member countries and the European Parliament. The rules would enter force two years after an agreement is concluded.
Also read: 28 million victims of forced labour: report
EU envoy launches ‘Erasmus+ Roadshow’ in Bangladesh
The European Union (EU) delegation in Bangladesh on Sunday began the ‘Erasmus+ Roadshow’ campaign to promote Erasmus + programme opportunities.
“Delighted to launch the ‘Erasmus+ Roadshow’ at the AIUB (American International University-Bangladesh) to publicise the EU’s scholarship and exchange programme and to help boost the number of EU scholarships in Bangladesh from the record high of 151 students last year,” EU Ambassador to Bangladesh Charles Whiteley tweeted after opening the campaign formally.
The campaign will continue till September 27 at 13 different public and private universities in Dhaka and Rajshahi to promote Erasmus + programme opportunities.
Read: EU delegation to run ‘Erasmus+ Roadshow’ in Dhaka, Rajshahi
Bangladesh seeks EU’s role for early repatriation of Rohingyas
Bangladesh has sought the European Union’s role to put pressure on Myanmar for early repatriation of the Rohingyas to their place of origin in Rakhine State.
Bangladesh mentioned that the countries like the UK, USA, Spain, Japan, Korea and France are investing and doing even more trading with Myanmar.
Foreign Minister Dr AK Abdul Momen met High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission (HR/VP) Josep Borrell Fontelles on the sidelines of the ASEAN Regional Forum in Phnom Penh, Cambodia on Thursday.
During the meeting, he raised the Rohingya repatriation issue which has never seen any light for the past five years.
Momen strongly sought the EU’s support in putting pressure on Myanmar to take back their nationals, according to the Ministry of Foreign Affairs.
Read: Rohingya Repatriation: Dhaka seeks proactive role from Indonesia, ASEAN