The Daily Star | 21 April 2026
Bangladesh, EU eyeing FTA after partnership deal
Bangladesh and the European Union are eyeing a Free Trade Agreement (FTA) and an Investment Protection Agreement (IPA) after the two sides initialled the Partnership Cooperation Agreement (PCA) in Brussels yesterday.
Bangladesh Foreign Ministry Secretary (East and West) Nazrul Islam and EU Deputy Managing Director (Asia and Pacific) Paola Pampaloni initialled the PCA, while Foreign Minister Khalilur Rahman, Prime Minister’s Foreign Affairs Adviser Humaiun Kobir, and European Commission High Representative Kaja Kallas were present as witnesses.
In a meeting, the two sides welcomed the new PCA as a platform for a forward-looking partnership.
They also highlighted Bangladesh’s post-LDC transition, the importance of preferential market access, and the launch of negotiations on an FTA and an IPA.
According to foreign ministry officials, initialling the PCA means the agreement now has a legal basis, with the draft finalised and agreed upon by both sides in January this year following five rounds of negotiation since 2024.
However, it will take a few months for the PCA to be translated into 24 European languages before it is signed.
Officials said Bangladesh’s relationship with the EU, the country’s largest export destination, has been that of development cooperation under the Cooperation Agreement signed in 2001.
Since then, Bangladesh’s exports to the EU have risen to around $26 billion, while the EU is placing more importance on Bangladesh, a rapidly growing country.
The EU’s duty-free market access for Bangladeshi goods will end by 2029, and Bangladesh will be required to meet certain conditions, including on labour rights, environment, and human rights.
“The PCA is a foundational agreement. We will have different joint committees on various sectors, including trade, investment, environment, labour, etc.,” said a foreign ministry official, preferring anonymity.
Against this backdrop, Bangladesh is seeking preferential market access and the launch of negotiations on an FTA and IPA. “We would like our exports to the EU to be protected and also ensure the protection of European investments in Bangladesh,” he told The Daily Star.
Bangladesh has been part of the EU’s Global Gateway Initiative, under which the country can get funding for renewable energy projects. The EU also included Bangladesh in its Talent Partnership, under which a skilled workforce can migrate to EU countries.
Altogether, the relationship with the EU is set to be elevated, and the two sides discussed all areas of cooperation, ministry sources said.
Khalilur Rahman and Kaja Kallas yesterday discussed political, economic, and development cooperation, focusing on trade and investment, Indo-Pacific cooperation, migration, skills development, labour standards, and the Rohingya crisis.
They also said the agreement will help strengthen cooperation on regional and global issues of shared interest.
He briefed her on Bangladesh’s recent democratic developments and ongoing reform and development efforts, while thanking Kallas for sending a strong election observation mission during the recent parliamentary elections.
Kallas highly appreciated Bangladesh for its very successful and credible elections.
Separately, Khalilur also met Ekaterina Zaharieva, commissioner for Startups, Research and Innovation of the European Commission, in Brussels and discussed expanding Bangladesh–EU cooperation in research, science, technology, and innovation.
They highlighted the importance of artificial intelligence, digital innovation, climate resilience, green transition, health, and sustainable development.
The meeting reaffirmed a shared commitment to building a forward-looking and innovation-driven partnership.
The Bangladesh foreign minister also held a bilateral meeting with Maxime Prévot, deputy prime minister and minister of foreign affairs, European affairs and development cooperation of the Kingdom of Belgium.
The meeting reviewed the state of Bangladesh–Belgium relations and explored avenues for enhanced cooperation in trade, investment, connectivity, innovation, and multilateral engagement. The two sides agreed to hold the third Bangladesh-Belgium Consultations in Brussels later this year.
Khalilur encouraged greater engagement by Belgian businesses and institutions in Bangladesh, particularly in areas where Belgium has recognised strengths, including logistics, port management, biotech and pharmaceuticals, technology, and water management.
