Dhaka: Bangladesh has successfully resolved 48 out of 61 non-tariff barriers and procedural obstacles identified by the European Union (EU), as it seeks EU support for a three-year extension of its Least Developed Country (LDC) graduation timeline. Commerce Minister Khandakar Abdul Muktadir made this announcement during a press briefing following a meeting with EU member state ambassadors and the EU Ambassador and Head of Delegation in Dhaka.
According to Bangladesh Sangbad Sangstha, the meeting took place in the conference room of the Ministry of Commerce to update EU representatives on Bangladesh's efforts in addressing trade barriers and to explore ways to enhance bilateral trade and investment. The session was attended by key government figures, including Adviser to the Prime Minister on Finance and Planning Prof Dr Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaed, State Minister for Planning Zonayed Abdur Rahim Saki, and Invest Bangladesh Authority Chairman Chowdhury Ashik Mahmud Bin Harun.
Muktadir highlighted the collaborative efforts of the Ministry of Commerce, National Board of Revenue (NBR), and relevant agricultural, fisheries, livestock, and shipping ministries in tackling the EU-raised trade barriers. Following discussions initiated in March, the government implemented various measures to address 61 specific non-tariff barriers and procedural bottlenecks, resolving 48 of them with ongoing work on the remaining issues.
The minister also mentioned that the government had introduced regulatory measures to simplify trade procedures and reduce business costs. Measures include removing barriers to license renewal for 100-percent foreign-owned logistics companies and increasing the annual limit for importing commercial samples from US$10,000 to US$20,000 through amendments to the Export Policy Order.
Additionally, duties on smart cards related to traceability technology have been restructured to segmented rates to lower costs, promoting wider use of traceability systems. However, Muktadir identified the Flag Vessel Protection Act as a major structural challenge to Bangladesh's maritime trade, given the country's limited domestic fleet required to carry 50 percent of trade volume.
With Bangladesh's annual trade volume around $130 billion, the existing fleet of 122 ships is insufficient. Muktadir emphasized the need for a long-term national strategy to expand the merchant fleet, citing a lack of clear planning to match fleet capacity with international trade growth.
The requirement for obtaining a No Objection Certificate (NOC) 15 days before shipment was also flagged as a non-tariff barrier impacting shipping efficiency. The commerce minister assured that the government would seek necessary legislative amendments to ensure maritime regulations do not impede international trade movements.
Simultaneously, Bangladesh has intensified diplomatic efforts to secure a three-year extension of its LDC graduation timeline, with EU support considered vital. Muktadir stated that the UN Committee for Development Policy (CDP) recommended the extension, and support has been obtained from the UN Economic and Social Council (ECOSOC). The final decision, expected during the UN General Assembly's 81st session, hinges on EU backing.
Bangladesh is currently set to graduate from the LDC category on November 24, 2026. Muktadir noted that the proposed three-year extension would provide crucial preparation time for the challenges of graduation, ensuring a smoother and more sustainable economic transition.
The minister expressed Bangladesh's aspiration to transform its trade relations with the EU into a reciprocal and comprehensive partnership through a Free Trade Agreement (FTA). As the EU is Bangladesh's largest export destination, an FTA is deemed vital for maintaining market access and enhancing long-term trade competitiveness.
Muktadir concluded by stating that the resolution of 48 trade barriers underscores Bangladesh's commitment to regulatory reform, fostering greater confidence among European trade and investment partners.