United News of Bangladesh

Chief Adviser Prof Muhammad Yunus on Sunday called for an early start to Free Trade Agreement (FTA) negotiations with the European Union, stressing the need for safeguarding Bangladesh’s trade preferences in its largest export market once the current duty-free access expires in the coming years. The Chief Adviser made the remarks during a courtesy call by Nuria Lopez, Chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), at the State Guest House Jamuna in Dhaka. European Union Ambassador to Bangladesh Michael Miller took part in the meeting. During the discussion, they discussed the need to accelerate European investment in Bangladesh, how to ensure smooth trade relations between Bangladesh and the EU, and the need for further reforms to improve the country’s business climate, said the Chief Adviser’s press wing. They also discussed the upcoming elections and the deployment of international observers to monitor the polls. Prof Yunus said the interim government has recently concluded an Economic Partnership Agreement (EPA) with Japan, paving the way for duty-free access for more than 7,300 Bangladeshi products to the world’s fourth-largest economy. He said that Bangladesh is preparing to hold similar negotiations with other countries, including the European Union, to ensure continued duty-free access for its products, particularly ready-made garments, to the EU market for the foreseeable future. “The EPA with Japan has opened doors for us. It gives renewed hope to our export items. We definitely hope to sign an FTA with the EU to expand our market,” the Chief Adviser said. EuroCham Chairperson Nuria Lopez said Bangladesh needs to begin FTA negotiations urgently, as the country may lose its existing trade preferences in the EU, its largest export destination, after graduating from Least Developed Country (LDC) status. She said that an FTA would attract more European investment to Bangladesh, create jobs and boost exports to advanced Western markets. Lopez pointed out that India is signing an FTA with the EU, while Vietnam already has such an agreement, allowing both middle-income countries preferential access to the European market. “We are advocating for an FTA. I will go to Europe to encourage private companies to invest in Bangladesh,” she said. EU Ambassador Michael Miller said that the commercial relationship with Bangladesh will evolve after graduation but not before 2029. He underlined the EU’s strong interest to bring European investment and technology to the country, an important market with a population of nearly 200 million, and spoke about the EU readiness to organise an EU/Bangladesh Business Forum in 2026. “We are looking for early political signals that EU companies will be encouraged to come and will enjoy a level playing field,” he said. The Chief Adviser also emphasised the relocation of factories to Bangladesh, noting that European firms can take advantage of the country’s large pool of skilled labour at competitive costs. “We are building a free trade zone. Our aim is to turn Bangladesh into a manufacturing hub for global businesses. We want more European investment in Bangladesh,” he said. Prof Yunus expressed satisfaction over the EU’s decision to deploy a large contingent of election observers to Bangladesh for the upcoming general elections and referendum. “It is important that EU election observers are here. It is a huge vote of confidence in revitalising our democracy,” he said, adding that the overall picture of the election campaign was ‘very positive’. Lamiya Morshed, SDGs Affairs Principal Coordinator and Senior Secretary of the government, was also present at the meeting.

Chairperson of the European Union Chamber of Commerce in Bangladesh (EuroCham) Nuria Lopez has said maintaining a "predictable and balanced" energy tariff regime is essential for ensuring investor confidence and supporting industrial expansion. "We believe a collaborative approach to policy design can help avoid business disruptions and send a positive signal to potential investors," Lopez said. In the spirit of constructive collaboration and shared commitment to Bangladesh’s economic progress, the EuroCham of Bangladesh on Tuesday emphasised the importance of working hand in hand with the government and relevant stakeholders to create a more conducive environment for European investors. EuroCham acknowledged the government’s efforts towards a sustainable energy future and appreciates the progress made in energy sector reforms. The Chamber, however, said they remain "concerned" about the recently announced gas tariff structure by the Bangladesh Energy Regulatory Commission (BERC), which introduces differential pricing based on industrial consumers’ contractual timelines and gas connections. While recognising the complexity of energy policy, EuroCham believes that the current model—placing higher tariffs on new and expanding industries—may unintentionally undermine Bangladesh’s competitiveness and investment appeal. Soybean oil prices go up Fragmented energy costs within the same sector risk discouraging both foreign and domestic investment at a time when Bangladesh is actively positioning itself as an attractive global business destination. EuroCham also points to the ambiguity surrounding the reclassification of long-standing industrial users under new Gas Sales Agreements and encourages BERC to approach such transitions with clarity and fairness to avoid unnecessary administrative and financial burdens. Echoing sentiments shared during the recent public hearing, EuroCham supports calls for a more inclusive and transparent reform process. The Chamber encourages BERC to engage more deeply with industry stakeholders in designing an energy pricing framework that aligns with the nation’s goals of industrial resilience, energy security and sustainable economic development. EuroCham said it remains fully committed to partnering with the government to shape policies that promote inclusive growth and a competitive business environment for all.

Ambassador of the European Union (EU) to Bangladesh Michael Miller on Tuesday expressed the EU’s intention to partner intensively with the European Union Chamber of Commerce in Bangladesh (EuroCham) EuroCham to maximise trade and investment. He laid emphasis on exploring more B2B contacts, navigating the challenges of LDC graduation and promoting sustainable due diligence in supply chains, opening up the prospect of greater EU foreign direct investment (FDI) and a more diversified Bangladeshi economy. The EuroCham was officially launched on Tuesday which is seen as a new milestone in EU-Bangladesh business relations. The event was attended by senior government officials, including the Chief Adviser's special envoy on international affairs Lutfey Siddiqui, the Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Chowdhury Ashik Mahmud Bin Harun, the Chairman of the National Board of Revenue (NBR) Abdur Rahman Khan, representatives from the Ministry of Foreign Affairs, Commerce, Finance, and other Government authorities. Also present were all EU Member States represented in Dhaka including the Heads of Mission from Denmark, France, Italy, Spain, and Sweden, consuls representing EU countries in Bangladesh, leading European companies, and local private sector leaders. EuroCham is a business initiative that is actively supported by the European Union Delegation and the EU Member States in Bangladesh. Chevron eyes new gas exploration in Bangladesh The Chamber will serve as a centre of excellence, promoting business relations between European investors and their counterparts in the country. It will facilitate dialogue between the private sector and key government stakeholders, such as BIDA, the Ministry of Commerce, and the National Board of Revenue (NBR) to improve the ease-of-doing business in Bangladesh. EuroCham will advise European and Bangladeshi companies on the impact of upcoming EU legislation on their supply chains, - the corporate sustainability due diligence directive, textile strategy, circular economy, digital product passport, and eco-design for sustainable products, to name just a few. With a view to facilitating Bangladesh’s green and digital transition, EuroCham will offer a platform for sharing know-how. EuroCham Bangladesh will form part of the European Business Organisations (EBO) Worldwide Network that represents European business interests in over 54 key global markets. It caters to European multinationals, as well as micro, small, medium, and large enterprises, said the EU Embassy in Dhaka. EuroCham Chairperson, Nuria Lopez, and the Board welcomed attendees, saying that the Chamber will focus on branding Bangladesh to attract more European investment; Europe not only brings capital but also a model of good governance and sustainable growth.  

Ambassador and Head of Delegation of the European Union (EU) to Bangladesh Charles Whiteley on Wednesday said the time has come for moving ahead with a European Chamber of Commerce in Bangladesh (EuroCham) to promote trade and investment and help ensure a smooth transition to GSP+ era. "GSP plus is not an easy ticket," he said during at a function at his residence, marking the "soft launch" of the EuroCham to boost Bangladesh-EU business ties. The EU's Generalised Scheme of Preferences Plus (GSP+) gives developing countries a special incentive to pursue sustainable development and good governance. Eligible countries have to implement international conventions on human rights, labour rights, the environment and good governance. There are some quite stringent requirements for GSP Plus accession and Bangladesh has already ratified the 32 conventions that are now required for GSP Plus membership. Bangladesh's 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, Bangladesh's largest export destination. There will be a three years transition period. "Our focus is now ensuring a swift transition. I think EuroCham will really be helpful," said Ambassador Whiteley. The EU sees huge potential as Bangladesh is one of the fastest-growing economies in the world and is predicted to be among the top 30 largest economies by 2036. Read more: EU keen to send observers for upcoming general election in Bangladesh: Envoy "It (EuroCham) should be business driven and business interests are reflected in it," said the EU ambassador, emphasising that the chamber will lobby for European business interests and the removal of barriers to trade and investment. The EU envoy said the EuroCham is not here to compete with the existing chambers but to complement the existing bilateral chambers of commerce. "It is an idea to help address problems and will forge links between Bangladesh and European businesses." Why EuroCham now? The EU said there is a well-established relationship with business potential. The EU is Bangladesh's largest trading partner and there is keen interest from European companies to explore investment opportunities in Bangladesh. The EU embassy says there are numerous EuroChams around the world with a proven record of supporting EU business. The EuroCham will assist businesses in navigating European and Bangladesh legislation, including in rapidly evolving areas such as due diligence and the green economy, said the EU embassy. It will facilitate the transition to GSP+ from a business perspective and bring critical thinking and analysis to bear on key business challenges, stimulating interest in existing and potential business sectors. Senior government officials, business leaders, EU Deputy Head of Mission Brend Spanier were present at the soft launching event.