The European Union Ambassador to Dhaka Michael Miller has urged Bangladesh to take initiatives to continue preferential trade facilities in the European market after its graduation from the least developed countries, or LDCs.
He visited two knitwear factories in Narayanganj and interacted with the leaders of the Bangladesh Knitwear Manufacturers and Exporters Association, or BKMEA, on Monday.
The EU expects Bangladesh's graduation from the LDC will be "easy", he said.
"Although the next preferential trade benefit, or GSP status, is different from the current "Everything but Arms, or EBA, facility", there is still scope for market expansion.
"That means the business partners here and the Bangladesh government now must carry out huge activities."
Highlighting the beginning of the efforts through a comprehensive review of labour law, Miller said: "We would like to see that in the near future and hope that transparency will be maintained with the EU."
The EU ambassador visited Epyllion Knitwears Limited's factory in Narayanganj's Madanpur on Monday morning.
He visited parts of the factory after meeting with the officials of Epyllion Group and representatives of the BKMEA.
As a least developed country, Bangladesh has been enjoying duty-free and quota-free access to the "EBA facility" in the EU along with 45 other countries.
The issue of having a GSP facility in the country's journey to graduate from the LDCs in the European market like now is also under discussion.
While the EU has promised to extend the benefits for a few more years, it has asked to take steps in areas including the factory environment, greening, and labour law reform.
The EU is the main trading partner of Bangladesh as a region within the scope of GSP. In 2023, 20.70 percent of Bangladesh's total trade was with the EU alliance.
Bangladesh exported goods worth $18.9 billion to the European market that year, in which the apparel sector played a major role. Against this, Bangladesh's imports - mainly machinery and chemicals - were worth $3 billion.
About his discussions with the BKMEA leaders, the ambassador said: "Access to our market is very important for the future prosperity of Bangladesh. It depends on the progress of the readymade garments, textiles, and knitwear sector and environmental, social, and good governance."
—bdnews24.com
