Bangladesh seeks to keep duty-free access to EU after LDC exit

COMMERCE minister Tipu Munshi is hopeful that the EU will continue its trade benefit for Bangladesh for 12 years after the country’s graduation from the grouping of the leastdeveloped countries (LDCs).

Bangladesh is set to leave the LDC group to become a developing nation in 2026.

The country is negotiating with the EU, the largest export destination for Bangladesh, to secure the duty-benefit for 12 years after graduation, Munshi said.

He spoke during a meeting with Rensje Teerink, the outgoing EU ambassador to Bangladesh, at his residence in the capital Dhaka.

Apart from Bangladesh, the group of LDCs is also lobbying the EU for duty-free market access for 12 years after their graduation.

Other LDCs have assured that they would work with the EU in helping Bangladesh obtain the duty benefit, the minister said in a press release on September 12.

EU assistance is needed to improve the trade negotiation capacity so that Bangladesh can be more competitive in the international markets and global supply chain.

“The efforts to increase trade with the EU will continue from the Bangladesh side,” the minister said.

Munshi described Bangladesh’s position in the global apparel market as strong, saying the garment industry performed well with assistance from the government during the coronavirus pandemic.

The government supported the garment industry through stimulus packages, facilitating payment of salaries and wages to workers during the pandemic when the sector was severely affected, he said.

The outgoing ambassador assured the minister of the EU’s continued support to Bangladesh in trade.

“The EU gives a lot of importance to Bangladesh in trade,” she said, adding that the country had efficiently tackled the fallouts of Covid-19.