REFAYET ULLAH MIRDHA

The European Union is set to begin an internal assessment of Bangladesh’s proposal for a free trade agreement (FTA) with the bloc, nearly a year after the proposal was first placed.

Md Abdur Rahim Khan, additional secretary (export) at the commerce ministry, said the EU sent a letter in this regard to the ministry in the first week of this month.

The bloc, however, did not mention a specific date to start the negotiations, he added.

At present, Bangladesh enjoys zero-duty benefits to the trade bloc but may lose the privilege after 2029 if a trade deal is not secured, and Bangladeshi exporters will face a 10 percent duty from that year.

Considering the importance of zero-duty benefits, Bangladesh sent a proposal to the EU seeking negotiations on an FTA in August last year, aiming to retain preferential market access to the EU after the country graduates from least developed country (LDC) status.

Bangladesh is scheduled to graduate from LDC status on November 24 this year if the process is not deferred.

BALANCING LDC DELAY AND EU ACCESS

Khan said Bangladesh’s immediate priority is delaying its graduation from the LDC category. The government applied to the UN Committee for Development Policy (UN CDP) in February this year seeking a three-year deferment until 2029, and the proposal is currently under review by relevant UN bodies.

At the same time, securing continued preferential