Bangladesh in panic over India-EU trade deal: Yunus urges FTA to save textile industry | World News

New Delhi: The recently signed free trade agreement (FTA) between India and the European Union has created unrest in Bangladesh. Mohammed Yunus, chief adviser to the interim government, called on the EU to immediately open negotiations to secure similar trade conditions for Dhaka. In a statement from his office, he emphasized the need to “ensure duty-free access through rapid free trade agreement negotiations with the EU.”

In Dhaka, he met with EU Ambassador to Bangladesh Michael Miller and European Chamber of Commerce (EuroCham) president Nuria Lopez. According to the statement, he emphasized that it is vital for Bangladesh to maintain its trade priorities in the European market when the current duty-free status ends in the coming years.

At the meeting held at Dhaka State Guest House Jamuna, Yunus discussed ways to increase European investment in Bangladesh, strengthen smooth trade relations between Dhaka and the EU, and improve the country’s business environment through additional reforms.

He highlighted that the interim government had recently signed an economic partnership agreement (EPA) with Japan, granting duty-free access to more than 7,300 Bangladeshi products to the world’s fourth largest economy.

He stated that similar agreements are being prepared with other countries, including the EU, to ensure continuity of duty-free access, especially for ready-made clothing.

Nuria Lopez pointed out the urgency of starting FTA negotiations and pointed out that Bangladesh is at risk of losing its current trade advantages if it leaves the least developed country (LDC) status. He stressed the need for immediate action to protect the country’s largest export market.

Bangladesh’s concerns stem from the fact that the India-EU FTA could directly impact the textile industry. So far, Bangladesh has enjoyed duty-free access to the European market under the “Everything But Arms” (EBA) scheme, while India’s exports faced 9 to 12 percent duty, while the scheme provided it with duty-free exports of garments. According to the new agreement, Indian textiles, leather and seafood will also benefit from zero tariffs.

With a larger raw cotton base and a fully integrated supply chain, India is now positioned to compete directly in Europe at lower prices. Analysts warn that by November 2029, India will have stable zero-tariff access to the EU, while Bangladeshi exports could face higher tariffs, making them more expensive for European buyers. This could endanger more than half of Bangladesh’s garment industry, which forms the backbone of the country’s economy.

The Bangladesh government is closely monitoring the changing regional trade scenario and calls for swift action to protect the textile industry and remain competitive in the global market.