FESI recently held separate meetings with H.E. Khandker Masudul Alam, Ambassador of Bangladesh to the EU, and the DG TRADE desk officer responsible for Bangladesh to discuss EU–Bangladesh trade relations and the prospects for a future Free Trade Agreement.

The discussions highlighted strong interest from Bangladesh in securing an FTA, but also some differences in how far the process has progressed. While the Bangladeshi side indicated that technical discussions were moving forward, DG TRADE described the upcoming contacts as exploratory discussions rather than technical negotiations. The Commission is still assessing Bangladesh’s request, and there is currently no Council mandate to open formal negotiations.

The key points emerging from the two meetings were:

• Post-LDC market access is the central concern. Bangladesh is due to graduate from Least Developed Country status, although it has requested a three-year postponement. The country is concerned that the new GSP safeguard threshold could ultimately result in apparel losing preferential access to the EU market. Bangladesh therefore considers an FTA the most durable way to provide long-term predictability.
• The Commission is conscious of the limited timeframe. DG TRADE recognises the implications of LDC graduation—whether it takes place as currently scheduled or is postponed—and believes that the available transition period must be used effectively.
• Bangladesh will need to demonstrate a high level of ambition. The Commission wants to understand how committed Bangladesh is to negotiating a comprehensive agreement. Any future FTA would need to extend beyond market access and cover areas including public procurement and sustainable development.
• EU offensive interests will also be important. DG TRADE is seeking to identify which European sectors, beyond those already sourcing from Bangladesh, could benefit from new export opportunities under an FTA.
• The potential impact on sporting goods companies is of particular interest. DG TRADE asked how companies might respond if no FTA were concluded and existing apparel preferences were removed. FESI stressed that sourcing decisions are made by individual companies and depend on numerous factors. However, while members value long-term relationships with trusted manufacturing partners, a move from duty-free access to MFN tariffs would inevitably affect the business case and could lead some companies to reconsider future investment levels in Bangladesh.
• Economic diversification is a priority for Bangladesh. The country wants to reduce its dependence on textiles, with footwear reportedly growing by around 20% annually and further ambitions in bicycle manufacturing and logistics.
• Sustainability is increasingly viewed as a competitive factor. The Ambassador highlighted renewable energy at factory level and preparations for the Ecodesign for Sustainable Products Regulation (ESPR) as important areas of focus.

FESI will continue engaging with the Commission and EU Member States in support of opening FTA negotiations. It will also provide evidence on the importance of establishing a predictable post-LDC trade framework for the sporting goods industry.