Bangladesh and the European Union are expected to begin preliminary discussions soon on a proposed free trade agreement (FTA), with the bloc set to seek the necessary backing from its 27 member states before formal negotiations begin.
Commerce and Industries Minister Khandakar Abdul Muktadir said on Sunday that both sides could initially engage their technical experts after the EU completes the internal process.
Bangladesh has already formally requested negotiations with the EU on an FTA and an investment protection agreement, he told reporters after a meeting with the EU ambassador and heads of mission of the bloc’s 27 member states at the Commerce Ministry.
The meeting reviewed ways to expand Bangladesh-EU trade and investment and progress in addressing non-tariff barriers raised by the European side.
Muktadir said the European Commission president, in a letter to the prime minister, had also expressed readiness to explore areas of common interest regarding the proposed agreements.
However, he said, the EU needs to secure the consent of its member states before the start of formal talks.
The process of gauging support from member states is expected to take place towards the end of this week, after which preliminary contacts between technical experts of the two sides could begin.
“We are going to start discussions with the European Union on a free trade agreement,” Muktadir said, describing the proposed deal as highly important for Bangladesh’s economy.
“The EU is Bangladesh’s largest export destination,” he added.
He said most of the obstacles to expanding trade and investment between Bangladesh and the EU were being addressed, including efforts by the government to remove non-tariff barriers identified by the bloc.
EU Ambassador to Bangladesh Michael Miller said the European Commission had responded positively after receiving Bangladesh’s formal proposal for discussions on an FTA.
Subject to the required approval from member states, joint technical discussions could begin as early as this week, he said.
Miller said the proposed agreement would go beyond tariff reductions and could cover a broad range of trade and economic issues, including e-commerce, intellectual property protection, human rights and other cross-border matters.
He said the EU generally pursues ambitious and comprehensive trade agreements with its partners, and discussions on a possible deal with Bangladesh would also cover a wide range of issues.
The EU envoy said a transparent, stable and competitive business environment would be essential to deepening economic cooperation between the two sides.
Greater transparency and fair competition in public procurement would benefit both Bangladesh and the EU, he added.
Responding to a question about imports from the United States, Muktadir said Bangladesh makes import decisions based on national interest, economic rationale and the needs of its people.
He said government procurement decisions on products such as liquefied natural gas and food grains take into account competitive prices, product quality and potential wastage.
Bangladesh’s trade policy is not influenced by any particular country, he said, adding that economic interests and public welfare remain the main considerations behind such decisions.
Finance and Planning Adviser Dr Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaed, State Minister for Planning Jonaed Abdur Rahim Saki and Bangladesh Investment Development Authority Executive Chairman Chowdhury Ashik Mahmud Bin Harun, among others, attended the meeting.