The European Chamber of Commerce (EuroCham) in Bangladesh has voiced concerns over the country’s possible move to offer major trade concessions to the United States. The interim government’s plan, still under consideration, could shift the trade landscape and impact Bangladesh’s long-standing preferential relationship with the European Union (EU).
The EU currently represents about 50% of Bangladesh’s total exports and has been offering duty- and quota-free access under the ‘Everything But Arms’ (EBA) scheme since 2001. This arrangement has been crucial for Bangladesh’s export-driven economy, particularly in the ready-made garments (RMG) sector. EuroCham fears that offering exclusive or more favorable terms to the U.S. could be seen as discriminatory and damage Bangladesh’s existing trade balance with the EU.
The chamber highlighted that EU businesses still face high tariffs and various non-tariff barriers when engaging with Bangladesh, despite the significant trade surplus in Bangladesh’s favor. In 2024 alone, Bangladesh exported goods worth €22 billion to the EU, while EU exports to Bangladesh totaled only €2 billion. EuroCham stressed the need for Bangladesh to uphold a balanced and rules-based trading environment.
Calling for urgent policy and customs reforms, EuroCham encouraged the Bangladeshi government to avoid trade practices that could strain relations with key partners. It emphasized that all trade negotiations should prioritize transparency and equity to maintain Bangladesh’s positive momentum in global trade and support continued foreign investment and market access for its products.
