Bangladesh, EU Push for FTA, Investment Pact Talks

Bangladesh and the European Union on Monday underlined the need to ensure continued preferential market access and expressed strong interest in launching negotiations on a Free Trade Agreement (FTA) and an Investment Protection Agreement (IPA).

The issues were discussed at a high-level meeting in Brussels between Bangladesh’s Foreign Minister Dr Khalilur Rahman and Kaja Kallas, High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission. Foreign Affairs Adviser Humayun Kabir also attended the meeting.

The talks covered a wide range of areas, including political engagement, trade and investment, development cooperation, Indo-Pacific cooperation, migration, skills development, labour standards, and the Rohingya issue.

Both sides highlighted Bangladesh’s transition from least developed country (LDC) status and stressed the importance of securing favourable trade arrangements during the post-transition period. Dhaka described the discussions as constructive and forward-looking.

A key outcome of the meeting was progress on the Bangladesh–EU Partnership and Cooperation Agreement (PCA), which both sides view as a foundation for a stronger and more structured partnership. The agreement was initialled in Brussels, signalling intent to elevate bilateral relations.

Officials said the PCA will serve as a comprehensive framework for long-term cooperation, covering areas such as human rights, governance, trade, investment, climate action, energy, transport, food security, and science and technology.

The agreement is also seen as a milestone, with Bangladesh set to become the first South Asian country to sign such a framework with the European Union.

Negotiations on the PCA began with an explanatory meeting in Dhaka in November 2024. Since then, both sides have held five rounds of talks and several technical meetings in Dhaka and Brussels. The final round, held in January this year, focused on key areas including legal and judicial cooperation, intellectual property rights, energy, fisheries and ocean governance, customs cooperation, and trade facilitation.

Both Bangladesh and the EU expressed optimism that the PCA, alongside future negotiations on FTA and IPA, will open new avenues for trade expansion, investment flows, and broader strategic cooperation.