Ambassador of the European Union (EU) to Bangladesh Charles Whiteley has said aligning labour law with international standards will be an "essential element" for the European Parliament and the Commission in considering Bangladesh's application for market access, the GSP+.

­­"Bangladesh has the option to accede to GSP+ which is the next most generous GSP programme after the everything but Arms (EBA)," he said while speaking at a seminar in Dhaka.

Commerce Minister Tipu Munshi attended the seminar as the chief guest while President of Dhaka Chamber of Commerce and Industry (DCCI) Md Sameer Sattar delivered welcome remarks.

Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Lokman Hossain Miah, among others, spoke at the seminar.

The DCCI and European Union Delegation to Bangladesh jointly hosted the seminar, titled "Unlocking Trade and Investment for European Companies in Bangladesh."

The EU ambassador said the implementation of the National Action Plan on the labour sector, which Bangladesh agreed with the EU, will be key deciding factor for GSP+.

"We are closely following the ongoing amendments of the Bangladesh Labour Act. We hope that the amendments will be effective with full transparency, in consultation with tripartite stakeholders, and with technical assistance from ILO," he said.

The envoy said Bangladesh is a rising economy with a great story of economic development and social progress.

The graduation to a lower middle-income and to a developing country status are historic milestones which bring new opportunities and which call for a reinvigoration of EU-Bangladesh ties, he said.

Ambassador Whiteley said the time is ripe for the partnership to evolve beyond current trends and to explore new areas of cooperation, from ICT to infrastructure, aviation to renewable energy, agriculture to pharmaceuticals.

He said the EU is keen to boost bilateral trade and investment ties, bearing in mind the sustained dynamism of the Bangladesh economy and the interest of European investors.

Over the last five decades, the relations between and the EU and Bangladesh have grown from strength to strength and become multidimensional, encapsulating political, trade, development, climate change, connectivity and security concerns, said the EU ambassador.

"Trade has been at the heart of this friendship," he said, adding that for decades, the EU has been the main destination for 'made in Bangladesh' goods.

Duty and quota free access coupled with the dynamism and resourcefulness of Bangladesh and her people have been a catalyst for the country's integration into the international trading system and for far-reaching socio-economic changes on the ground, Whiteley mentioned.

Presently, there is a strong trade imbalance in EU-Bangladesh trade and very weak levels of FDI from the EU. EU is a top investor in Bangladesh.

In the last 8 years since 2015, more than 5 billion ($5,394.32) dollar FDI came to Bangladesh from the EU countries, according to Bangladesh Bank.

When it comes to overall EU investment capital (FDI stock), it is only 2 billion dollar or just 10 percent of total foreign investment capital retained in Bangladesh.

"I must say that compared with EU investments in developing countries such as Vietnam ($28 billion EU FDI stock in Vietnam in 2022) it is far from being ideal," said the ambassador.

Working together with EU

Commerce Minister Tipu Munshi has urged the European investors who already invested here and have been successfully operating their businesses to advocate for Bangladesh's competitiveness in the global arena.

"You come and see. Let's take the message to investors," he said while speaking as the chief guest.

The commerce minister said Bangladesh wants to work hand in hand with the European Union (EU) and is committed to removing the existing problems that hinder inbound investment.

"Yes, we have problems. But listen to the investors. We want to work with the EU. We will work together. We will resolve the problems," Munshi said, adding that if the foreign investors come here and invest, they will benefit a lot.

Lokman said they are working for reforms to attract more FDI from the EU member countries. "BIDA is committed to provide faster and investment friendly services."

He also informed that all services of BIDA will be available in OSS by the end of this year and invited more direct or joint venture EU investment in Bangladesh enjoying various fiscal and non-fiscal incentives given to the foreign investors.

DCCI President Sameer Sattar said since Bangladesh will graduate into a developing country in 2026, Bangladesh's exports will experience higher tariff and loss of existing international support measures which may affect entire export market and local industrial landscape linked with global value chain system.

In this regard, he said, Bangladesh needs to sustain the export market in its traditional and major destinations including the EU.

The DCCI president acknowledged the decision of GSP facility extension to Bangladesh by the EU till 2029 considering the need for Bangladesh's smooth economic transition.

Readiness of Bangladeshi industries coupled with sustainable regulatory framework, favourable tax regime, positive image branding, technologically skilled workforce, export competitiveness, conducive environment and diversification of products are key to attract more investment from the European Union countries in Bangladesh, said the speakers.

DCCI President Md Sameer Sattar said the five-decade-long Bangladesh and EU partnership had truly become an unprecedented and remarkable journey that turned the EU into one of the most reliable trading partners of Bangladesh.

"Our total export to the EU has surged to USD25.23 billion in FY2023 having 93% RMG share which has positioned Bangladesh as one of the popular sourcing destinations," he said.

Upon the LDC graduation of Bangladesh in 2026, Bangladesh needs to sustain the export market in its traditional and major destinations including the EU.

He also emphasized sustainable export product diversification to increase the share of Bangladesh's export to the EU market.

He invited EU investors to harness the country's proven and diversified investment sectors including agro-processing, textile, automobile, service sector, ICT in hi-tech parks, skills development, infrastructure, economic zones and logistics sectors for rewarding return and sustaining the win-win bilateral economic ties.

Ambassador and Head of EU Delegation to Bangladesh Charles Whiteley said for decades, the EU has been the main destination for "made in Bangladesh" goods.

The graduation of Bangladesh to a developing country will reinvigorate EU-Bangladesh ties, he said, adding that it is time to explore new areas of cooperation from ICT to infrastructure, aviation, renewable energy, agriculture and pharmaceuticals. The EU is keen to boost bilateral trade and investment ties in the days to come.

Counsellor, EU Delegation to Bangladesh Jurate Merville said that to attract European FDI, a friendly regulatory framework is crucial.

She said that the EU is one of the top investors here in Bangladesh. She also called for an increasing skilled workforce to tap the future potentials of international business.

Country Representative, Airbus Morad Bourouffala stressed on human capital development, skill development is more important for Bangladesh.

Syed Nasim Manzur, Managing Director, Apex Footwear Ltd. said RMG has positioned us in a prestigious stage in the global arena.

"But we have a few other sectors that have huge potential to have their access in the EU market like the leather industry," he said.

"At present we have many (Leather Working Group) LWG certified factories in Bangladesh. We need more EU companies to invest in manufacturing industries in Bangladesh. We need EU investment in skills transfer technology to create a technologically skilled workforce," he added.

Iqbal Chowdhury, CEO, Lafarge Holcim said cost effective and sustainable energy security is crucial for smooth production. "Existing FDI is our brand ambassador to attract more FDI."

Massih Niazi, CEO, Petromax LPG said they are successfully operating in Bangladesh. "At present we are facing a few short-term challenges like shortages of dollar, lack of LC opening and inflation, devaluation of taka."

He also hoped that these challenges will be overcome soon. He said the power supply, roads and transportation system should be improved, he added.

Ziaur Rahman, Regional Country Manager, H and M said to compete in the international market "we have to prioritize our product diversification."

Mushtaque Ahmed, Vice President, Bangladesh Bicycle and Parts Manufacturers and Exporters Association said Bangladesh is now producing a huge number of e-bikes and the EU market will be a potential destination for this product.