PHOTO: PID

STAR BUSINESS REPORT

Chief Adviser Muhammad Yunus yesterday called for an early start to free trade agreement (FTA) negotiations with the European Union (EU), stressing the need to safeguard trade preferences in Bangladesh’s largest export market before the current duty-free access expires.

He made the remarks during a courtesy call by Nuria Lopez, chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), at the state guest house Jamuna in Dhaka. EU Ambassador Michael Miller was also present.

During the meeting, Lopez said that Bangladesh needs to begin FTA negotiations urgently, as the country will lose its existing trade preferences after graduating from the least developed country (LDC) category.

She said that an FTA would attract more European investment, create jobs, and boost exports to advanced Western markets.

“We are advocating for an FTA. I will go to Europe to encourage private companies to invest in Bangladesh,” she said.

In response, Yunus said that the interim government recently concluded an economic partnership agreement (EPA) with Japan, paving the way for duty-free access for over 7,300 Bangladeshi products to the world’s fourth-largest economy.

“The EPA with Japan has opened doors for us and given renewed hope. We are preparing to hold similar negotiations with other partners, including the EU, to ensure continued duty-free access, particularly for ready-made garments,” the chief adviser said.

Ambassador Michael Miller clarified that while the commercial relationship will evolve post-graduation, changes will not take effect before 2029.

He expressed the EU’s readiness to bring investment and technology to Bangladesh, a market of nearly 200 million people, and proposed organising 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,” Miller said.

Addressing the business environment, Yunus emphasised the relocation of factories to Bangladesh, citing the country’s large pool of skilled labour at competitive costs.

“We are building a free trade zone to turn Bangladesh into a manufacturing hub. We want more European investment,” he added.

The discussion also touched upon the upcoming general elections and referendum. Yunus expressed satisfaction over the EU’s decision to deploy a large contingent of international observers to monitor the polls.

“It is a huge vote of confidence in revitalising our democracy,” he said, describing the overall picture of the election campaign as “very positive.”