Key Highlights:
- Prime Minister Sheikh Hasina has requested Ireland’s assistance in extending the transition period of the Generalized System of Preferences (GSP) for Bangladesh in the European Union market until 2032
- In 2022, Bangladesh recorded exports worth $466 million to Ireland
- Conversely, in 2022, Ireland exported goods worth $34.9 million to Bangladesh
- In the realm of IT, Ireland stands as the base for 16 of the top 20 global tech firms and the leading 3 enterprise software providers, employing over 106,000 individuals
Irish Minister for Enterprise, Trade, and Employment, Simon Coveney’s visit to Dhaka on March 17 marked a significant stride in bolstering bilateral ties. During his tenure in Bangladesh, Coveney inaugurated Ireland’s inaugural honorary consulate in Dhaka, underlining the commitment to deepen diplomatic relations.
The appointment of Cosmos Group Deputy Managing Director Masud Jamil Khan further solidified this commitment. The following day, Salman F Rahman, Adviser to the Prime Minister at Bangladesh Investment Development Authority (BIDA), extended an offer of an economic zone to Ireland, aiming to fortify foreign investment ahead of Bangladesh’s graduation from least developed country status in 2026. Rahman highlighted Ireland’s interest in investing in Bangladesh’s key sectors like pharmaceuticals, tourism, IT, and agriculture.
“We have proposed an economic zone for investment so that they can invest well in this country. We want to sign a memorandum of understanding with them through the Ministry of Foreign Affairs, which is in process. Under this agreement, the two countries will engage in mutual investment and cooperation. A delegation from Bangladesh wishes to visit Ireland, a member of the 27-nation European Union, which is the biggest market for Bangladeshi exports. We will try to learn from their experiences and how they have succeeded”.
– Salman F Rahman, Prime Minister’s Private Industry and Investment Adviser
Coveney underscored the potential for collaboration in economic advancement, stressing the importance of trust and equality in bilateral relations. With discussions underway for a new Irish ambassador to Bangladesh, both nations are poised to achieve greater milestones through joint efforts.
Additionally, Prime Minister Sheikh Hasina sought Ireland’s assistance in extending the transition period of the Generalized System of Preferences for Bangladesh in the EU market, indicating a proactive approach towards economic cooperation.
Existing Export Showdown: Bangladesh vs. Ireland
In 2022, Bangladesh recorded exports worth $466 million to Ireland. Major exports included Knit T-shirts ($86 million), Knit Sweaters ($66.1 million), and Non-Knit Women’s Suits ($52.2 million). Over the past 27 years, Bangladesh’s exports to Ireland have shown an annualized growth rate of 16.8%, starting from $7.1 million in 1995 to reaching $466 million in 2022. Notably, Bangladesh did not export any services to Ireland that year.
Conversely, in 2022, Ireland exported goods worth $34.9 million to Bangladesh. The primary items exported were Scrap Iron ($14.5 million), Malt Extract ($8.76 million), and Concentrated Milk ($3.87 million). Over the same period of 27 years, Ireland’s exports to Bangladesh have seen a steady annualized growth rate of 5%, starting from $9.33 million in 1995 to reaching $34.9 million in 2022. Similar to Bangladesh, Ireland did not export any services to Bangladesh in that year.
In terms of economic indicators, in 2022, Bangladesh held the 100th position in the Economic Complexity Index (ECI) with a score of -0.9 and ranked 52nd in total exports with $64.2 billion. Meanwhile, Ireland stood at the 16th position in the Economic Complexity Index with a score of 1.28 and ranked 31st in total exports with $236 billion.
Ireland’s Exports to Bangladesh (2022)
- Total exports from Ireland to Bangladesh in 2022: $34.9 million
Breakdown of Exports:
- Scrap Iron: $14.5 million
- Malt Extract: $8.76 million
- Concentrated Milk: $3.87 million
Potential Fields of Collaboration
Ireland’s strong interest in Information Technology (IT) is evident, with the country serving as the Europe, Middle East, and Africa (EMEA) headquarters for major tech giants such as Hubspot and Indeed.
In the realm of IT, Ireland stands as the base for 16 of the top 20 global tech firms and the leading 3 enterprise software providers, employing over 106,000 individuals. Meanwhile, Bangladesh’s IT sector experiences rapid growth, with more than 120 companies exporting ICT products valued at nearly $1 billion to 35 nations, a figure expected to soar to $5 billion by 2021.
Demonstrating its commitment, Ireland seeks to attract skilled IT professionals from Bangladesh, recognizing the potential for collaboration in this sector. With Bangladesh boasting a youthful and trainable population, supported by Ireland, it has the capacity to emerge as a significant IT hub.
IT Sector Comparisons: Ireland vs. Bangladesh
Ireland:
- Base for 16 of the Top 20 Global Tech Firms.
- Home to the Leading 3 Enterprise Software Providers.
- Employs over 106,000 Individuals.
Bangladesh:
- Rapid Growth in IT Sector.
- 120+ Companies Exporting ICT Products.
- Export Value: Nearly $1 Billion to 35 Nations.
- Expected Export Value to Soar to $5 Billion by 2021.
Additionally, both Ireland and Bangladesh harbor flourishing pharmaceutical industries, offering ample opportunities for mutual advancement and collaboration. Similarly, Bangladesh’s agro-processing sector presents an appealing prospect for Irish investors.
Bangladesh’s agro-processing industry, contributing approximately 1.7% to GDP and providing employment to about 250,000 people, has seen its share of total exports rise to approximately 3.5%. Notably, the domestic market for agro-processed goods reached USD 2.8 billion in 2019.
Ireland’s Call for Bangladeshi Talent in Education and Labor
Education stands out as an arena ripe for collaboration between the two nations. The Foreign Minister of Bangladesh has urged Ireland to streamline visa procedures for Bangladeshi students, a step that could foster educational interchange and fortify cultural bonds.
While Ireland boasts a comprehensive International Education Strategy aimed at attracting top-tier global student talent, specific metrics concerning Bangladesh-Ireland educational cooperation remain elusive. Nonetheless, the presence of a Bangladeshi migrant enclave persists, with 62 new work permits issued to Bangladeshis in Ireland in 2019.
Moreover, Ireland harbors a modest Bangladeshi migrant community. With the Irish government expressing interest in enlisting foreign labor, Bangladeshis stand poised to seize this opportunity. Notably, the number of Bangladeshi asylum seekers in Ireland surged from 99 in 2014-2015 to 231.
As Bangladesh marches towards graduation from least developed country status, Ireland emerges as a steadfast ally, ready to contribute to its journey towards economic prosperity. With strategic collaboration in key sectors and a commitment to innovation and talent exchange, the future holds immense promise for both nations as they embark on this shared path of growth and development.
