Bangladesh and the European Union strike a landmark comprehensive new Partnership and Cooperation Agreement (PCA) that replaces a limited framework that has governed their ties for over two decades.
Officials say the deal was initialled Monday by Kaja Kallas, High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, and Bangladesh Foreign Minister Khalilur Rahman in Brussels, the capital city of Belgium.
The PCA marks a decisive shift from the EU-Bangladesh Cooperation Agreement 2001, transforming what was largely a development- and trade-focused relationship into a broader strategic partnership aligned with evolving geopolitical and economic realities.
While the 2001 agreement centred primarily on development cooperation and preferential trade access, the new one introduces "a far more expansive and structured framework".
Comprising 82 articles, the agreement institutionalises cooperation across a wide spectrum of sectors, including political dialogue, security, migration, energy, transport, climate action and maritime affairs.
Crucially, the agreement elevates the relationship beyond its traditional pillars by embedding regular political engagement and strategic coordination-areas that were either absent or only loosely defined in the earlier interaction framework.
The inclusion of security and maritime cooperation reflects Bangladesh's growing importance in the Indo-Pacific, a dimension not previously addressed in bilateral arrangements.
Another key departure lies in the PCA's stronger normative foundation. Unlike the 2001 agreement, the new framework explicitly anchors cooperation in shared commitments to democracy, human rights, peace and the rule of law, aligning Bangladesh more closely with the EU's external policy architecture.
"This signals a shift towards a values-based partnership, where economic cooperation is increasingly linked with governance standards and institutional reforms," it is stated in the objective.
Although Bangladesh has long benefited from the EU's Everything But Arms (EBA) scheme -- granting duty-free, quota-free access for exports -- the PCA goes further by broadening engagement into investment, financial systems, sustainable agriculture and energy transition.
The agreement also introduces structured dialogue on migration and mobility, an area of growing importance amid labour-market linkages between Bangladesh and EU-member states.
Additionally, new provisions on people-to-people contact, education and cultural exchange aim to deepen societal ties, moving beyond purely economic engagement.
The updated framework comes at a time when Bangladesh is preparing for graduation from the least-developed country (LDC) status, which will eventually alter its preferential trade access under schemes like EBA.
Against this backdrop, the PCA is designed to ensure continuity and stability in relations, while supporting Bangladesh's transition into a more diversified and rules-based economic partnership with the EU.
Foreign Ministry Secretary (East and West) Nazrul Islam and EU Deputy Managing Director (Asia and Pacific) Paola Pampaloni signed the agreement in Brussels.
Foreign Minister Khalilur Rahman, Prime Minister's Foreign Affairs Adviser Humayun Kabir and European Commission High Representative Kaja Kallas were present at the signing ceremony.
The initialling of the agreement follows negotiations that began in late 2024 and concluded earlier this year. The PCA will now proceed to formal signature and ratification by both sides before entering into force.
Once operational, it will formally replace the 2001 agreement, marking what officials describe as a "new chapter in EU-Bangladesh relations"-one that reflects not only the scale of existing trade, now exceeding €22 billion, but also the growing strategic relevance of the partnership in a shifting global landscape.
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