Dhaka:France and Germany have pledged continued support for Bangladesh's economic diversification and development transition, emphasizing the importance of accelerated reforms to maintain export competitiveness beyond the European Union's Everything But Arms (EBA) preferential trade arrangement.
According to Bangladesh Sangbad Sangstha, the commitment was made in a statement issued by the French Embassy in Dhaka, commemorating the 25th anniversary of the EU's EBA initiative. The statement highlighted that France and Germany are prepared to assist Bangladesh in diversifying its economy and preparing for future development phases.
The EBA initiative has been described as a landmark success by the two countries, acknowledging its significant role in transforming Bangladesh's economy and enhancing its integration into global trade over the past 25 years. Duty-free and quota-free access to the EU market has notably helped Bangladesh become a leading exporter of ready-made garments, supporting millions of livelihoods and creating economic opportunities for women.
France and Germany, as major European trading partners, have been instrumental in Bangladesh's development through bilateral trade, investment, and cooperation. They remain key export destinations for Bangladesh in Europe and continue contributing to its economic transformation.
The statement also addressed the postponed graduation of Bangladesh from the Least Developed Country (LDC) category until November 24, 2029, allowing continued benefits from the EBA scheme until 2032, including a three-year transition period from the EU. This extension offers Bangladesh the chance to implement necessary reforms, diversify its export base, and enhance industrial competitiveness before the eventual cessation of preferential trade benefits.
However, France and Germany have cautioned that the additional time should be effectively utilized to prepare for the post-EBA trading environment. The EBA initiative, introduced by the EU in 2001, offers duty-free and quota-free access for nearly all products from least developed countries, excluding arms and ammunition. This arrangement has been pivotal in expanding Bangladesh's exports, especially in the garment sector, while fostering industrialization, employment, and economic growth.
The two European nations reiterated their readiness to continue supporting Bangladesh through trade, investment, and development partnerships as the country moves towards a more diversified and competitive economic future.