Ambassador of the European Union (EU) to Bangladesh Charles Whiteley on Wednesday said aligning labour law with international standards will be an “essential element” for the European Parliament and the Commission in considering Bangladesh’s application for market access, the GSP+.

“Bangladesh has the option to accede to GSP+ which is the next most generous GSP programme after the Everything but Arms (EBA),” he said while speaking at a seminar in Dhaka.

Commerce Minister Tipu Munshi attended the seminar as the chief guest while President of Dhaka Chamber of Commerce and Industry (DCCI) Md Sameer Sattar delivered welcome remarks.

Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Lokman Hossain Miah, among others, spoke at the seminar.

The DCCI and European Union Delegation to Bangladesh jointly hosted the seminar, titled “Unlocking Trade and Investment for European Companies in Bangladesh.”

Read: EU urged to extend transition period of GSP up to 6 years for smooth graduation of Bangladesh

The EU ambassador said the implementation of the National Action Plan on the labour sector, which Bangladesh agreed with the EU, will be key deciding factor for GSP+.

“We are closely following the ongoing amendments of the Bangladesh Labour Act. We hope that the amendments will be effective with full transparency, in consultation with tripartite stakeholders, and with technical assistance from ILO,” he said.

The envoy said Bangladesh is a rising economy with a great story of economic development and social progress.

The graduation to a lower middle-income and to a developing country status are historic milestones which bring new opportunities and which call for a reinvigoration of EU-Bangladesh ties, he said.

Ambassador Whiteley said the time is ripe for the partnership to evolve beyond current trends and to explore new areas of cooperation, from ICT to infrastructure, aviation to renewable energy, agriculture to pharmaceuticals.

He said the EU is keen to boost bilateral trade and investment ties, bearing in mind the sustained dynamism of the Bangladesh economy and the interest of European investors.

Read: Shahriar Alam discusses GSP, other issues with EU Trade Commissioner

Over the last five decades, the relations between and the EU and Bangladesh have grown from strength to strength and become multidimensional, encapsulating political, trade, development, climate change, connectivity and security concerns, said the EU ambassador.

“Trade has been at the heart of this friendship,” he said, adding that for decades, the EU has been the main destination for ‘made in Bangladesh’ goods.

Duty and quota free access coupled with the dynamism and resourcefulness of Bangladesh and her people have been a catalyst for the country’s integration into the international trading system and for far-reaching socio-economic changes on the ground, Whiteley mentioned.

Presently, there is a strong trade imbalance in EU-Bangladesh trade and very weak levels of FDI from the EU. EU is a top investor in Bangladesh.

Read more: LDC Graduation: BGMEA urges EU to extend GSP trade benefits for additional years

In the last 8 years since 2015, more than 5 billion ($5,394.32‬) dollar FDI came to Bangladesh from the EU countries, according to Bangladesh Bank.

When it comes to overall EU investment capital (FDI stock), it is only 2 billion dollar or just 10 percent of total foreign investment capital retained in Bangladesh.

“I must say that compared with EU investments in developing countries such as Vietnam ($28 billion EU FDI stock in Vietnam in 2022) it is far from being ideal,” said the ambassador.

DCCI President Sameer Sattar said since Bangladesh will graduate into a developing country in 2026, Bangladesh’s exports will experience higher tariff and loss of existing international support measures which may affect entire export market and local industrial landscape linked with global value chain system.

In this regard, he said, Bangladesh needs to sustain the export market in its traditional and major destinations including the EU.

The DCCI president acknowledged the decision of GSP facility extension to Bangladesh by the EU till 2029 considering the need for Bangladesh’s smooth economic transition.