Highlights:
- Bangladesh, EU to discuss trade, investment and remaining trade barriers
- EU has identified 52 non-tariff barriers, with Bangladesh addressing 40
- Discussions will focus on preserving EU market access after LDC graduation
- Bangladesh considering 100% foreign ownership in the logistics sector
Ministers, advisers and state officials will negotiate strategies for boosting bilateral trade, attracting foreign direct investment and dismantling remaining trade barriers in a meeting with ambassadors from 27 European Union member states alongside the EU ambassador in Dhaka today (6 September).
Commerce Minister Khandaker Abdul Muktadir will lead the Bangladesh side at the meeting to be held at the Secretariat, with Finance and Planning Adviser to PM Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaid, State Minister for Planning Zonayed Saki and Invest Bangladesh Authority Chairman Ashik Chowdhury also attending.
Government officials said the European Union has identified 52 non-tariff barriers to trade and investment in Bangladesh, of which the government has already addressed 40, while work is under way to remove the remaining 12.
The discussions will also focus on retaining Bangladesh’s export access to the EU market after the country graduates from the least developed country category, removing trade barriers and attracting more investment from EU member states.
Logistics and shipping reforms
Among the EU’s proposals is allowing 100% foreign ownership in the logistics sector. The commerce ministry is working to amend the Freight Forwarders Rules to facilitate the proposed investment arrangement, officials told TBS.
The EU has also proposed removing a requirement under Bangladesh’s shipping law that at least 50% of cargo be carried by Bangladeshi-flagged vessels.
In response to demands from major export-oriented sectors, the government has initiated steps to relax the requirement for carrying 50% of cargo on Bangladeshi-flagged vessels, officials said.
The government is also processing applications from foreign vessels within 48 hours, according to officials.
Customs delays remain a key concern
An official familiar with the matter said the most important barriers identified by the EU include delays in customs procedures and limited use of pre-arrival processing.
The EU has also raised concerns about delays in cargo clearance caused by manual checks and scanning at airports and seaports.
To address these issues, the government is working to establish digital links between customs and ports, said commerce ministry officials. They said the introduction of the National Single Window is helping reduce coordination problems and irregularities in cargo clearance.
Standards for medicines and public procurement
The EU has recommended ensuring international standards in pharmaceuticals, healthcare and public procurement.
Officials said the Bangladesh side will point out that medicines are being registered if they have certification from the World Health Organisation, the European Medicines Agency or designated developed countries including the United States, the United Kingdom and Germany.
The government has also kept plug-in facilities active at ports for the rapid storage of temperature-sensitive medicines, while a draft standard operating procedure has been prepared for ground handling, officials said.
Easing business and investment procedures
The EU has long raised concerns about non-tariff barriers to doing business and investing in Bangladesh.
European officials consider the process of obtaining clearances and approvals from different government agencies for business operations and foreign direct investment to be slow and complicated.
The government has introduced the BanglaBiz platform and the One Stop Service portal to simplify the process of starting a business. Officials said the initiatives could enable businesses to obtain initial licences in less than a month.
The government has also introduced longer visa validity for EU citizens and foreign professionals. Private investors from EU countries can receive “P” category visas for up to two years at a time, while those involved in employment, recruitment or specialist work can receive “E” category visas for up to two years, with the requirement for annual renewal removed.
About The Author
