Prime Minister Sheikh Hasina has called upon the European Union to continue providing Bangladesh with the Generalised Scheme of Preferences Plus, GSP+, facilities after the country graduates from the Least Developed Countries bracket in 2026.
“I hope that the EU will offer GSP+ to Bangladesh to support our development following our LDC graduation,” she said in a statement at the signing ceremony of several agreements at the EU Headquarters in Brussels on Wednesday (October 25, 2023).
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Prime Minister Sheikh Hasina and President of the European Commission Ursula von der Leyen on Wednesday launched the negotiations on a new Partnership and Cooperation Agreement to expand and develop the relationship between the EU and Bangladesh at the Global Gateway Forum— a platform for global stakeholders, such as governments, financial institutions, the private sector, civil society and international organizations, to expedite the European Union’s Global Gateway projects.
On this occasion, the EU, the European Investment Bank (EIB) and Bangladesh signed agreements worth €350 million for renewable energy projects to contribute to a sustainable green transition of Bangladesh’s power sector and to the achievement of the country’s climate mitigation targets.
Five additional cooperation actions, worth €70 million, supporting education, decent work, green construction, e-governance and the prevention of gender-based violence were also launched.
Bangladesh will step in the developing countries bracket on November 24, 2026. The United Nations General Assembly authorised the graduation in November 2021.
The World Trade Organization laws stipulate that a country cannot avail duty-free imports and other facilities once it graduates from the LDC bracket.
EU-Bangladesh trade partnership booming
Noting that this year marks the 50th anniversary of Bangladesh-EU partnership, Prime Minister said, “We are pleased that the EU is now Bangladesh’s largest trading partner.”
She said the EU’s Everything-but-Arms scheme contributed immensely to Bangladesh’s socio-economic development. She recalled formalizing this arrangement during her first term in office in 2000.
Talking about a 350 million Euro finance contract Dhaka signed with the European Investment Bank, she said Bangladesh appreciates EU’s interest in partnering with it on climate action and renewable energy.
Sheikh Hasina also praise EU for launching the Global Gateway initiative.
Global Gateway initiative, which European Commission President Ursula von der Leyen launched in 2021, is a strategic framework designed to streamline the EU’s external investment and development cooperation projects with partner countries.
With partnerships like these, the EU wants to gain international influence. The idea is for the Commission, member countries and the private sector to join forces as “Team Europe,” and mobilize €300 billion in funds to boost smart, clean and secure links across the world’s digital, energy and transport systems. This holistic approach to development also implies that specific infrastructure projects will be accompanied by a broader package — including regulatory and administrative support, improved standards and long-term maintenance.
Addressing at the Opening Plenary Session of Global Gateway Forum, the premier said, “For Bangladesh, the EU is our trusted trade, development, and humanitarian partner. We have fruitful cooperation in security, climate change, and human mobility. Our shared values and commitments remain at the heart of our engagements with the EU.”
She also thanked the EU for its humanitarian assistance for the 1.2 million Rohingyas being temporarily sheltered by Bangladesh.
“The solution to the Rohingya crisis lies in their safe and sustainable return to their homeland in Myanmar. I urge the EU to remain engaged for an early durable solution to the crisis,” she said.
PM Hasina said they have renewed commitment to promote workers’ rights as well as safe and regular migration. “I flagged our interest in partnering on research and innovation to find solutions to some of our local challenges. We are planning for a future partnership with the EU focusing more on strategic elements,” she added.
She said they have agreed to launch negotiations on a Partnership and Cooperation Agreement very soon. “This would open a new chapter in our excellent bilateral relations,” she said.
EC President Ursula Von der Leyen in her statement said Bangladesh and the European Union celebrate the 50 years of diplomatic relations between them.
“In all these years, we’ve built a solid partnership and now we take it to the next level,” she said.
Talking about the loan and grants package for the renewable energy of Bangladesh, the EC said the investment package of more than 400 million euros is good for climate and also good for job creation locally.
Bangladesh’s Potential to Become a Trading Hub
Addressing the event, the Prime Minister said that Bangladesh has the potential to become a regional trading hub for 3 billion consumers in the region.
“My father, the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman, wanted to see Bangladesh as a regional bridge-builder. With 170 million people, we are strategically located between South and Southeast Asia. Bangladesh has the potential to become a trading hub for 3 billion consumers in the region,” She said.
“Our road, rail, and port infrastructure is being built as part of regional economic corridors. We have constructed the Padma Multi-Purpose Bridge with our own resources. We have offered access to the Bay of Bengal to the land-linked territories of Nepal, Bhutan, and Northeast India. Our airports can serve as gateways between the East and the West,” Prime Minister added.
“Connectivity is a common binding factor between Bangladesh and the EU in our Indo-Pacific outlooks.” She added.
Bangladesh is now the world’s 35th largest economy. The country’s 70-billion-dollar economy has grown into 465 billion in less than 15 years. The extreme poverty rate of Bangladesh has come down to 5.6% from 25.1% in 2006.
Sheikh Hasina said that her government has moved in a planned way to ensure food security, universal school enrollment, community-based healthcare, safe water and sanitation, cost-free housing, rural communication, disaster resilience, climate adaptation, 100% electricity coverage, nationwide internet, industrial growth, infrastructure development, and, most importantly, women’s empowerment. We have decided to move from climate vulnerability to resilience and prosperity.
Appreciating the Global Gateway initiative and Call for Investment
Prime Minister Sheikh Hasina said that Bangladesh appreciates the Global Gateway’s focus on transport networks, health security, green energy, digital transformation, research, and innovation.
“We seek the EU’s continued trade preferences for our smooth LDC graduation,” xhe urged.
Bangladesh offers one of the most attractive investment environments in South Asia. Sheikh Hasina invites EU investors to explore the facilities in our Special Economic Zones and Hi-Tech Parks.
“We have scope for working further on decent work and the circular economy,” she said.
Prime Minster said, “Bangladesh is willing to join the EU in promoting green hydrogen. We can benefit from the EU’s expertise in the sustainable use of marine resources. We need investment in cold chain networks to preserve our agricultural outputs. Our pharmaceuticals and medical equipment industries can support the EU’s efforts at diversifying production. We seek partners for our upcoming institutes on frontier technologies.”
“Our dynamic young population is ready to join the EU’s skills and talent partnership programmes. We trust the Global Gateway will help realize our vision for a ‘Smart Bangladesh’ by 2041.” She added.
In her statement, she said Bangladesh expressed serious concern over the wars and wanted to work together to establish peace globally.
“We expressed serious concerns over the wars in Gaza, Ukraine and other parts of the world. We agreed to join forces for peace everywhere,” she said.
