The EU suggests that Bangladesh must foster competition in order to attract Foreign Direct Investment (FDI)

On Monday, European Union (EU) Ambassador Michael Miller stated that Bangladesh needs to open its markets to attract greater Foreign Direct Investment (FDI). He also emphasized that, in order to maintain benefits like duty-free access under the GSP Plus scheme, Bangladesh must adhere to EU labor rights and environmental standards.

Speaking at a seminar on EU-Bangladesh relations hosted by the Cosmos Foundation, Miller pointed out that Bangladesh controls various sectors, from tea to others, without encouraging innovation and competition. He stressed that fostering competition is crucial for the country’s growth, especially during a period of complex political change. He also noted that industries with significant export potential, such as pharmaceuticals and electronics, are not being utilized. Despite this potential, Bangladesh has not been welcoming to foreign investment, particularly from the EU, which has been deterred by unfavorable conditions.

Miller reiterated that for the EU to invest, Bangladesh must create a level playing field where foreign investors are confident they won't be pushed out due to government-private sector collusion. He also stressed the importance of improving labor rights for the country’s stability and the well-being of its people. On environmental protection and climate change, he encouraged cooperation with the EU, noting that global challenges require shared efforts.

Regarding Bangladesh's transition to a higher-income status, Miller explained that the country’s graduation from Least Developed Country (LDC) status is based on UN data, with a planned transition period through 2029. He assured that the EU is committed to ensuring a smooth transition, emphasizing the importance of forward planning, particularly regarding taxes and market changes.

The EU envoy also expressed interest in strengthening military cooperation between the EU and Bangladesh, particularly in areas like maritime security and port safety. He highlighted the importance of maintaining a rules-based international order, in which both the EU and Bangladesh have a shared interest.

Miller underscored the EU’s commitment to sustainable development, aiming to empower local authorities and build long-lasting partnerships. He clarified that development aid should not just be about providing money but ensuring that local authorities can continue initiatives independently once external support ends.

In his address, Professor Rashed Al Mahmud Titumir of Dhaka University discussed the evolving relationship between Bangladesh and the EU, advocating for investment in high-value manufacturing, green technologies, and industrial collaborations. He called on the EU to adopt incentive-based policies instead of punitive measures when offering duty-free facilities, and to support regional connectivity, healthcare, and social protection reforms.

Professor Lailufar Yasmin, also from Dhaka University, highlighted Bangladesh’s significant contribution to the global platform economy, supplying 16% of the world’s online labor, much of which involves women working from home.

Ambassador Iftikher Ahmed Chowdhury moderated the discussion, which also featured insights from Cosmos Foundation Chairman Enayetullah Khan, Ambassador Tariq Ahmed Karim, and Nahar Khan, Executive Director of the Cosmos Foundation.