Bangladesh is poised to commence formal negotiations with the European Union in September concerning a proposed free-trade agreement (FTA), as the nation moves to lock in long-term market access ahead of its Least Developed Country (LDC) graduation.
Formal discussions are expected to commence during the second week of next month. The Commerce Ministry is striving to secure continued market access for Bangladeshi exporters ahead of graduation.
The EU has likewise signalled its readiness for exploratory discussions but has pressed Bangladesh to take tangible steps towards removing NTBs and strengthening the investment climate.
Bangladesh presently benefits from duty-free, quota-free access under the EU’s ‘Everything But Arms’ (EBA) scheme.
Following LDC graduation, it is anticipated to retain EBA preferences for a further three years, through until 2029, and may subsequently pursue GSP+ status to sustain preferential access.
The EU remains Bangladesh’s largest trading partner, making up 21.5% of the nation’s total goods trade during 2025, according to European Commission data.
According to European Commission figures, two-way merchandise trade stood at €23.3 billion in 2025, with the EU recording a €19.1 billion deficit.
Apparel and textiles constituted nearly 94% of Bangladesh’s exports towards the EU bloc.
Experts contend that Bangladesh ought to aim to finalise the FTA ahead of 2029 to safeguard its competitiveness within the EU market.
The urgency has intensified as rivals such as Vietnam has already signed an FTA with the EU, granting them a stronger market footing.
Image courtesy: Hyosung
