Chief Adviser Prof Muhammad Yunus Sunday directed opening free-trade agreement (FTA) negotiations with the European Union forthwith to safeguard Bangladesh's trade preferences in its largest export market as the current duty-free access is set to expire.
The head of interim government stressed the urgency during a courtesy call by Nuria Lopez, Chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), at the state guesthouse Jamuna in Dhaka.
Michael Miller, European Union's Ambassador in Bangladesh, took part in the meeting and 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.
They also discussed the upcoming elections and the deployment of international observers to monitor the polls.
Professor Yunus mentions that 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.
Bangladesh is preparing to hold similar negotiations with other countries, including the European Union, to ensure continued duty-free access for its products -- particularly readymade garments -- to the EU market for the foreseeable future, he told the EU side.
"The EPA with Japan has opened doors for us. It gives renewed hope for our exports. We definitely hope to sign an FTA with the EU to expand our market," the Chief Adviser said.
The 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 notes that an FTA would attract more European investment to Bangladesh, create jobs, and boost exports to advanced Western markets.
Lopez points 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 told the meet.
EU Ambassador Michael Miller said that the commercial relationship with Bangladesh would evolve after graduation but not before 2029.
He underlines EU's strong interest in bringing European investment and technology to Bangladesh -- an important market with a population of nearly 200 million. He also expresses 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 during the
trade discussion.
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 told the EU side.
Professor Yunus expressed satisfaction over the EU decision to deploy a large contingent of election observers to Bangladesh for the upcoming general election 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 is "very positive."
Lamiya Morshed, SDG Coordinator and Senior Secretary of the government, was also present at the meeting.
Merchandise exports earned Bangladesh US$48.28 billion in the last fiscal year (2024-25) and the EU accounted for 44.29 per cent or $19.71 billion.
Bangladesh's exports are destined to face up to 12-percent duty after LDC graduation and its transition period till 2029.
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