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EU cooperation with Bangladesh

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Relations between the European Commission and Bangladesh date from 1973. The EC-Bangladesh Commercial Cooperation Agreement, signed in 1976, was replaced in March 2001 by an updated Trade and Cooperation Agreement. This agreement paved the way for cooperation on a broad range of ideas, including political dialogue, indicating an advanced level of the relationship.

The EC's country analysis and objectives are set out in the new Country Strategy Paper[1] that covers the years 2007 – 2013 with a total envelope of €385 million (36.24 billion taka). The CSP is heavily shaped by the Millennium Development Goals[2] and the Government of Bangladesh's own Poverty Reduction Strategy Paper[3].

Development Cooperation

Focal Areas

The Country Strategy for 2007 – 2013 addresses three focal areas identified in the PRSP where the EC's policies, strengths and experiences are best able to contribute to delivering outcomes broadly expressed in the MDG targets.

These are:

  • Social sectors with preference for education (€185 million)

    > Current Projects and Programmes by sector

  • Good governance and Human Rights (€130 million)
     

  • Economic and trade development (€ 50 million)

These core interventions will be accompanied by a small scale intervention in a non-focal area:

Non-Focal Area

  • Environment and disaster prevention (€20 million)

In addition, the food security programme will continue to support the provision of effective safety nets to the poorest and most vulnerable groups and other actions.

EC commitment to gender and environment remains unchanged and will be woven into the design of programmes in all three categories. The PRSP recognises that discrimination against women is an intrinsic component of poverty and exclusion in Bangladesh. More…

Economic Cooperation and Enhancing Trade Capacity

Identifying economic and trade development as a third priority, with an allocated budget of €50 million reflects the EC's continued commitment to assist the country in shouldering the effects of the phase out of the Multi Fibre Agreement. Continuation will be given to the successful measures supported under the previous strategy (2002 – 2006) by supporting the trade policy framework of the government and enhancing the enabling environment for business.

The EC is one of the largest donors in Bangladesh in this sector, owing to the significance of the sector for Bangladesh's growth, and to the fact that the EU is Bangladesh's largest trading partner. Under the previous CSP (2002 – 2006) Bangladesh received the largest Trade Related Technical Assistance envelope (€63 million) in Asia.  

The growth of the garments sector in the past has had positive effects on poverty alleviation and women's empowerment which are now threatened by the potentially negative impact of the phasing out of the quota regime under the agreement of textiles and clothing. The garments sector currently employs 1.9 million people, mostly women, and directly benefits 10 – 15 million people. The EC is already addressing the potential impact of the ending of the Multi Fibre Agreement on Bangladesh's textile and garment industry and will continue to focus on the emerging situation in the Trade Related Technical Assistance package.

Under the Everything But Arms initiative[4], the EC has already granted Bangladesh duty and quota-free access for all export goods for an indefinite period as a Least Developed Country and is one of the key supporters of the Doha Development Agenda within the World Trade Organization negotiations.

Building on the programmes developed under the previous CSP, the new Trade programme will be implemented in two stages. The first stage (NIP 2007 – 2010 with an allocation of €25 million) will focus on the improving legal and institutional framework and the second NIP (2011 – 2013, also with an allocation of €25 million) will concentrate on the promotion of export diversification. More…

Humanitarian Aid

The EU assistance in Bangladesh switched from classic food aid operations to a more comprehensive rural development co-operation introducing the concept of food security as an objective to be achieved in the longer term. Concerning EC bilateral food aid/food security assistance, the Commission has provided annually around 30 million Euro of food security support through the Government, WFP and NGOs.

Since 1994, humanitarian aid provided by the European Community Humanitarian Aid Office (ECHO) has played a crucial role in international emergency assistance responding to natural disasters (floods and cyclones), which struck Bangladesh. The supported emergency assistance projects, as well as DIPECHO projects, have contributed positively to reducing the impact of disasters in Bangladesh, and have provided impetus to flood mitigation and prevention. More…

Regional Cooperation

Regional cooperation and integration contributes to the integration of Asian countries into the world economy and plays a decisive role in consolidating peace and preventing conflict. It enables the countries involved to face cross-border challenges in many fields, including the environment and the use and management of natural resources. More…


[1] Country Strategy Paper 2007-2013

[4] http://www.eudelbangladesh.org/en/trade/eba.htm

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