Vice-President of the European Commission Kaja Kallas on Monday said the Partnership and Cooperation Agreement (PCA) with Bangladesh is about prosperity for both sides through trade and investment, digital trade, customs cooperation, intellectual property rights, education and training, and science and technology.

"PCA is rooted in shared commitment to international law and norms. It foresees greater cooperation on climate change, counterterrorism, migration, trafficking, money laundering, drugs, organised crime, and crisis management," she said on the occasion of the 'initialling' of the PCA.

Bangladesh is the first South Asian country to conclude a modern PCA with the European Union.

Once it enters into force, the PCA will replace the 2001 Cooperation Agreement.

Kallas, also EU High Representative for Foreign Affairs and Security Policy, thanked both the negotiating teams, in particular, the chief negotiators whose efforts have been really solid.

"I look forward to signing the Partnership and Cooperation Agreement in the near future once necessary formalities, including legal scrubbing are completed and to working together with you to make these commitments a reality," she said.

She said it responds to the need for a "more strategic and comprehensive" basis for the Bangladesh-EU relations, because the existing bilateral agreement dates back to 1994.

"It also reflects our shared ambition to deepen cooperation and build resilience," she added.

Kallas welcomed Foreign Minister Dr Khalilur Rahman to Brussels and said, "We appreciate your visit so early in your tenure."

The Foreign Minister was joined by Humaiun Kobir, Adviser to the Prime Minister of Bangladesh on Foreign Affairs.

The visit marked a significant milestone in Bangladesh-EU relations as the two sides initialled the PCA, said the Ministry of Foreign Affairs.

In addition to Adviser Humaiun Kobir, the Foreign Minister of Bangladesh was accompanied by Dr. Md. Nazrul Islam, Secretary, Ministry of Foreign Affairs; Nahida Sobhan, Ambassador and Permanent Representative of Bangladesh to Geneva; and Khandker Masudul Alam, Ambassador of Bangladesh to Belgium and Head of Mission to the EU during the meetings.

She congratulated the Foreign Minister and the new government in Bangladesh, especially as the government tackles the ambitious reforms, not least through the Global Gateway and the response to the ongoing Rohingya crisis is also a vital pillar to their ties.

"I am pleased that you have come to Brussels for this very positive occasion, the initialling of the agreement," Kallas said, adding that this marks a significant step forward in their relations.

Bangladesh and the EU 'initialled' PCA, marking a major step forward in strengthening bilateral relations between the European Union and Bangladesh, a key partner in the Indo-Pacific region.

The PCA offers a comprehensive and ambitious framework for enhanced political, economic, trade and strategic cooperation, grounded in shared commitments to democracy, human rights, peace and security, climate action and sustainable development.

Comprising 82 articles, the PCA will enhance collaboration in areas such as political dialogue, trade and investment, energy, transport, agriculture, migration, security, finance, maritime affairs and people-to-people exchanges.

The EU and Bangladesh have been in talks since late 2024, finalising negotiations early this year.

The initialling of the text opens the way for formal signature and ratification by both parties in the near future after finalisation of the procedure by the respective authorities, to make these new commitments a reality.

Bilateral ties between Bangladesh and the EU span over 50 years, with development cooperation and trade as major facets of relations.

The EU is Bangladesh's largest trading partner and two-way trade now exceeds €22 billion.

Since 2001, Bangladesh benefits from the EU's 'Everything but Arms' (EBA) arrangement, which grants duty-free, quota-free access for all exports, except arms and ammunition.