Bangladesh will formally begin discussions with the European Union next month on signing a free trade agreement (FTA), Commerce Minister Khandakar Abdul Muktadir said today (12 August).
He made the remark while speaking as the chief guest at a seminar titled “Halal Ecosystem in the ASEAN Region: Prospects for Bangladesh”, organised by the Bangladesh Institute of International and Strategic Studies (BIISS).
The European Union is the largest export market for Bangladesh. As a least developed country (LDC), Bangladesh currently enjoys duty-free market access to the bloc under the Everything But Arms (EBA) scheme, which will remain in place for three years after the country graduates from the LDC category.
Bangladesh has long been seeking an FTA with the EU as it prepares to lose LDC-specific trade preferences.
Vietnam and India, Bangladesh’s major competitors in garment exports to the European market, have already signed FTAs with the EU.
The minister further said Bangladesh is preparing to sign bilateral FTAs with Malaysia and Indonesia at the earliest possible time.
“We are taking initiatives to sign FTAs to ensure preferential market access for Bangladeshi investors in global markets before LDC graduation,” he said. Negotiations on FTAs are also underway with another 10 to 12 countries.”
Asked whether a Bangladeshi delegation would travel to Europe for the FTA discussions or an EU delegation would visit Bangladesh, a ministry official told The Business Standard that discussions on the matter were ongoing and no decision had yet been finalised.
At the seminar, Muktadir also called for the development of a strong, internationally recognised halal ecosystem by drawing on the experience of Asean countries.
“The halal economy can no longer be confined to the food and beverage sector,” he said.
“It has evolved into a large global economic system encompassing food, pharmaceuticals, cosmetics, modest fashion, tourism, logistics, technology, financing and international certification,” he added.
BIISS Director General Major General ASM Redwanur Rahman delivered the welcome address at the seminar, while BIISS Research Director Dr Mahfuz Kabir presented the keynote paper.
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