Bangladesh Clears 48 EU Trade Barriers as FTA Talks Loom

Bangladesh has dismantled 48 of the 61 non-tariff barriers identified by the European Union, clearing a major obstacle to trade with its biggest export market as Dhaka moves towards negotiating a landmark Free Trade Agreement (FTA) with the bloc.

Commerce Minister Khandaker Abdul Muktadir disclosed the breakthrough on Sunday after a meeting with EU Ambassador Michael Miller, heads of delegation and ambassadors of the EU’s 27 member states at the Commerce Ministry.

The meeting was attended by Adviser to the Ministry of Finance and Planning Rashed Al Mahmud Titumir, Foreign Affairs State Minister Shama Obaed, Planning State Minister Zunaid Abdur Rahim Saki and Bangladesh Investment Development Authority (BIDA) Chairman Chowdhury Ashik Mahmud Bin Harun.

The meeting reviewed Bangladesh’s progress in removing trade obstacles flagged by the EU and explored ways to deepen bilateral trade and investment at a critical juncture for the country’s export-dependent economy.

“Of the 61 barriers identified by the EU, nearly half are related to the National Board of Revenue (NBR). We held separate discussions with the NBR, agriculture, fisheries, livestock, shipping and other relevant ministries and agencies and have resolved almost all of them,” the minister said.

The progress comes as Bangladesh prepares for a potentially transformative shift in its trade regime following graduation from the Least Developed Country (LDC) category.

Among the barriers already removed is a restriction on the renewal of licences for foreign logistics companies. Bangladesh has also doubled the annual limit for exporters to import product samples from $10,000 to $20,000, following an EU objection. The change has been incorporated into the latest Import Policy Order.

The government has also overhauled customs valuation procedures for smart cards used in product traceability. Previously, customs duties were calculated on values higher than the cards’ actual prices. Two separate valuation categories have now been introduced, the minister said.

The reforms are aimed at making Bangladesh’s trading environment more predictable and reducing administrative costs for exporters and foreign investors.

Muktadir said Bangladesh and the EU would soon launch negotiations on an FTA, describing the initiative as “extremely important” for the economy.

“The EU is Bangladesh’s largest export destination, so starting FTA negotiations with the bloc is extremely important for our economy,” he said.

The stakes are particularly high as Bangladesh faces the prospect of losing some of the trade preferences it currently enjoys after LDC graduation. Securing continued market access to the EU therefore remains a strategic priority for Dhaka.

Bangladesh has also asked the EU to support its request for a three-year extension of the LDC graduation timeline.

Muktadir said Bangladesh had already received recommendations from the UN Committee for Development Policy and the relevant Economic and Social Council (ECOSOC) committee. The request will now go before the 81st session of the UN General Assembly, with a final decision expected by 24 November 2026.

Dhaka hopes the extension request will be approved either through a vote or without one.

Despite the sweeping progress, several barriers remain, with shipping capacity emerging as one of the most difficult stumbling blocks.

One major EU concern centres on a legal requirement that 50 per cent of Bangladesh’s import-export cargo be transported by Bangladeshi-flagged vessels.

The minister said the requirement was unrealistic given the country’s extremely limited shipping capacity.

Bangladesh Shipping Corporation currently operates only seven vessels, while private operators have around 115, taking the national fleet to roughly 122 ships.