Bangladesh is preparing to initiate formal negotiations in November 2025 for a Free Trade Agreement (FTA) with the European Union (EU) — its largest export market — to preserve duty-free access after its LDC graduation in 2026.
A feasibility study by the Commerce Ministry confirmed that an FTA would significantly benefit Bangladesh’s export competitiveness, especially as its current ‘Everything But Arms (EBA)’ privileges will expire in 2029. The study’s findings will guide upcoming talks during the EU delegation’s visit to Dhaka.
Commerce Secretary Mahbubur Rahman said preliminary discussions have already taken place and that both sides are eager to move forward. The EU currently accounts for 44% of Bangladesh’s exports, amounting to $21.38 billion in FY2023–24, mostly from the textile and apparel sector.
However, once EBA benefits end, Bangladesh’s garment exports may face up to 12% tariffs under the EU’s GSP+ scheme, which excludes ready-made garments if they surpass 9% of the EU’s total apparel imports. Currently, Bangladeshi apparel holds about 16.5% of that share.
The government is therefore prioritizing the FTA route over sole reliance on GSP+, while also negotiating relaxed rules of origin to retain competitiveness. Alongside trade discussions, Bangladesh and the EU are working toward signing a Partnership Cooperation Agreement (PCA) to deepen collaboration on governance, rights, and sustainable development.
The move underscores Bangladesh’s proactive strategy to secure long-term market access and ensure export stability in the post-LDC era.
