Bangladesh Resolves 48 Of 61 EU Trade Barriers, Moves Toward FTA Talks

(MENAFN- Bangladesh Monitor) Dhaka: Bangladesh has resolved 48 of the 61 non-tariff trade barriers identified by the European Union, paving the way for formal preparatory discussions on a free trade agreement (FTA) and an investment protection agreement with the bloc.

Commerce Minister Khandaker Abdul Muktadir disclosed the developments at a joint press briefing at the Ministry of Commerce on September 6, read a press release.

EU Ambassador and Head of Delegation to Bangladesh Michael Miller, Economic and Planning Adviser Rashed Al Mahmud Titumir, Foreign Affairs State Minister Shama Obaed, Planning State Minister Zunaid Abdul Rahim Saki, and senior officials from the commerce and foreign ministries attended the briefing.

The remaining trade barriers are also being processed for early resolution, the commerce minister said.

Muktadir said an EU delegation led by Ambassador Miller had raised a number of specific obstacles affecting trade with Bangladesh in March, after he assumed office.

Following the concerns, the National Board of Revenue, Ministry of Agriculture, Ministry of Fisheries and Livestock, Ministry of Shipping and other relevant agencies worked together to resolve most of the issues within a short period, he said.

Among the key issues resolved were complications surrounding the renewal of licenses for wholly foreign-owned logistics companies, he said.

The annual limit for importing commercial samples has also been increased to USD 20,000 from USD 10,000.

Bangladesh has additionally resolved customs valuation complications involving smart cards used for scanning and ensuring traceability of export products, according to the minister.

FTA talks may begin this week

EU Ambassador Michael Miller said the European Commission had responded positively to Bangladesh's formal proposal for an FTA and an investment protection agreement.

Joint technical discussions on the agreements could begin as early as this week once the necessary approvals from EU member states are completed, he said.

Miller said a transparent, stable and competitive business environment would be essential for deepening economic cooperation between Bangladesh and the EU.

He also stressed the importance of transparency and fair competition in public procurement, saying both Bangladesh and the EU would benefit from a procurement process that ensures fair competition.

The EU envoy also expressed optimism that negotiations over Bangladesh's possible purchase of Airbus aircraft would move forward quickly as part of efforts to expand aviation and trade cooperation between Bangladesh and the EU.

Bangladesh seeks EU support on LDC graduation

The commerce minister also sought stronger EU support for Bangladesh's proposal to defer its graduation from the UN's Least Developed Country (LDC) category by three years.

He said the recommendations of the UN Committee for Development Policy and the Economic and Social Council have been positive on the matter.

The issue is expected to be placed for a final decision at the 81st session of the UN General Assembly, he said, adding that strong support from the EU would play an important role for Bangladesh.

Imports based on national interest

Responding to a question about imports from the United States, Muktadir said Bangladesh makes import decisions based on national interests, economic rationale and public needs.

For government purchases of LNG and food grains, the government procurement committee considers competitive prices, product quality and wastage before approving purchases, he said.

“Bangladesh's trade policy is not driven by the influence of any particular country,” the minister said, adding that the country's economic interests and the welfare of its people remain the key considerations behind such decisions.

The latest developments are expected to create new opportunities for Bangladesh's export sector, particularly the readymade garment, agro-processing and pharmaceutical industries, while stronger trade ties could also encourage greater bilateral investment and technology cooperation.

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