EU-Bangladesh Trade

Bangladesh has pursued a policy of trade liberalization throughout the last ten years. Export diversification and import liberalization received increased attention. As a result, a considerable reduction in tariff and non-tariff barriers was achieved.

Bangladesh’s exports to the EU market have benefited from a preferential market access, i.e. duty and quota-free access. However, Bangladesh’s trade capacity presently relies on a very limited number of export products. There is, therefore, a need for a profound diversification of the country’s export range.

Although in recent years exports have diversified into new areas such as garments, knitwear, shrimp, leather and household textiles goods, this did not prevent a weakness in the product base and economy becoming more fragile, with growing domestic imbalances creating weaknesses in the foreign exchange market. The importance of traditional products declined significantly, particularly jute and jute by–products. A major concern is the quality and standards of the exports, especially the frozen food exports to the EU.

Trade has always been the driving factor of the EC-Bangladesh relations. As an LDC, Bangladesh received quota and duty free access to the EU under the 1986 Textile Agreement and GSP respectively. The Everything But Arms (EBA) of 2001 assured the continuation of GSP for an indefinite period for all LDCs.

The balance of trade, over the years, remained hugely in favour of Bangladesh (3.3 billion euro in 2004). The main items Bangladesh exports to the EU are readymade garments (90%), frozen food (6%), leather, jute and tea. The main imports from the EU consist of machinery and mechanical appliances (55%) and chemical products (14%). In 2004, the EU imports from Bangladesh was 4.2 billion euros, and exports to Bangladesh amounted to 892 million euros. The EU is the biggest export destination of Bangladeshi products (56%).

EU Trade with Bangladesh   FOR LATEST DATA

For more information, please visit:

·         The European Commission’s Directorate General for Trade

·         Customs duty and quota information

·         Licenses for textiles & clothing and steel imports to the EU

·         European Patent Office

·         Office for Harmonisation in the Internal Market (OHIM)

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