The EU is broadly supportive of the Bangladesh government's reform agenda and emphasises the need for it to deliver on its promises and ensure compliance with its human rights obligations. 

Development assistance 

The main areas where the EU helps Bangladesh are economic development, human rights, good governance and the environment. Under its Multiannual Indicative Programme for Bangladesh 2014-2020, the EU has committed aid of up to €690 million (without considering Thematic and Regional funds).

Economy 

Today, by revenue, over half of Bangladesh’s exports go to the EU (55.5% in the first quarter of 2016, according to Bangladesh Bank). This is due largely to the highly advantageous trade terms granted by the EU (the "Everything but Arms" (EBA) scheme). 

Bangladesh now enjoys a significant trade surplus with the EU  (Bangladesh-EU trade statistics).

Key agreements 

• EU-Bangladesh Cooperation Agreement. 
• Covers trade, economic development, human rights, good governance and the environment. 
• Agreement on Trade in Textiles Products. 
• Regulates the distribution of export licenses from Bangladesh – although today (due to the EBA scheme) Bangladesh no longer has any quota restrictions on its exports to the EU. 
• EU strategy paper for Bangladesh. 

The European Union (EU’s) trade relations with Bangladesh are based on unilateral trade preferences granted by the EU since 2001 under the GSP Everything but Arms (EBA) duty-free, quota-free market access arrangement for the LDCs. 

The EU is Bangladesh's largest export destination, accounting for over 60 per cent of all exports to the EU under EBA. From 2011 to 2019, Bangladeshi exports to the EU rose from €9.0 billion to over €19 billion, while EU exports to Bangladesh improved from €1.7 billion to 3.4 billion during the same period.  

Bangladesh’s major export products include clothing (over 90%), footwear, frozen food, agro-products, among others, while the EU’s major exports to Bangladesh are machinery, transport equipment, and chemicals.  

Investment by European companies in Bangladesh offers jobs & skills, better working conditions & CSR, state-of-the-art technology, globally competitive products, and economic diversity. 

The EU-Bangladesh Business Climate Dialogue, coordinated by the EU Delegation in Dhaka and Bangladeshi Commerce Ministry, is aimed at promoting trade and investment.  

Workplace Safety & Respect for labour rights

Following the Rana Plaza tragedy in July 2013, the EU created the Sustainability Compact, with the Government of Bangladesh, the US, Canada, plus, ILO, with commitments to improve workplace safety, respect for labour rights, and responsible business conduct. 

Since 1 July 2021, under the EU Enhanced Engagement with Bangladesh as a GSP EBA beneficiary, the Government of Bangladesh put into implementation a National Action Plan (NAP) on the labour sector for the next five years ((2021-2026)). The NAP aims to bring the Bangladesh Labour Act and Export Processing Zone Labour Law up to international standards.

Related information 

Access2Markets: Exporting from the EU, importing into the EU - all you need to know

EU-Bangladesh diplomatic relations were established in 1973. In 2001, a cooperation agreement was signed extending to trade, economic and development cooperation, human rights, good governance and the environment. Our Multi-annual Indicative Programme (MIP) for Bangladesh for 2021-2027 focuses on three priority areas: Human Capital Development, Green Inclusive Development, and Inclusive Governance. The MIP aims to strengthen cooperation in key areas and enhance education, employment opportunities, energy efficiency, environmental protection, gender equality, access to justice, public services, and migration management.

Global Gateway

Global Gateway is the European Startegy to boost smart, clean, and secure connections in digital, energy, and transport sectors worldwide while strengthening health, education, and research systems. With a focus on the UN's Agenda 2030 and the Paris Agreement, it aims to mobilize investments of up to €300 billion. Through the 'Team Europe Approach,' the European Union and its Member States are collaborating with private sector to drive transformative impact. In Bangladesh, Team Europe Initiatives support actions on decent work and green energy transition in partnership with multiple European countries.

Find more about the Team Europe Initiatives in Bangladesh.