In a significant move to strengthen ties, European Commission (EC) President Ursula von der Leyen has expressed the European Union’s desire to enhance its collaboration with Bangladesh through a potential Comprehensive Partnership and Cooperation Agreement (CPCA). The announcement comes as both parties look to explore new avenues for partnership.
In a letter addressed to Chief Adviser Prof. Muhammad Yunus, von der Leyen emphasised the EU’s commitment to addressing specific needs in various sectors, including the RMG industry. The EU is currently the largest trading bloc for Bangladesh, accounting for over 58 per cent of its total exports each year, with the RMG sector being a major contributor.
Bangladesh’s garment exports to the EU reached US $ 18.15 billion in the January-November period of 2024, marking a 2.99 per cent year-on-year growth, according to Eurostat data. The EU accounts for more than 64 per cent of Bangladesh’s total apparel exports, highlighting the significance of this market for the country’s economy. Notably, one in every three EU consumers wears Bangladeshi-made denim, a garment category where Bangladesh has outpaced China in the EU over the past decade.
As part of the potential partnership, the EC has indicated that there is substantial scope for EU investments in secure and reliable networks and connectivity, which could further bolster the RMG sector alongside other industries. The EU’s Global Gateway initiative aims to facilitate investments in areas such as climate adaptation, health, digital services, and energy, which could indirectly benefit the garment industry by improving overall infrastructure and governance.
This renewed interest from the EU follows a two-day introductory meeting on the CPCA held in early November, which was delayed due to protests in Bangladesh. With the looming graduation of Bangladesh from the group of least developed countries by late 2026, the phasing out of zero-duty benefits under the EU’s Generalised Scheme of Preferences (GSP) for Everything But Arms (EBA) is a pressing concern for the RMG sector.
As the EU seeks to maximise the impact of its initiatives, it aims to integrate targeted technical assistance to support policy development and effective governance in key sectors, including the RMG industry. The ongoing collaboration holds promise for the future of Bangladesh’s garment exports, ensuring that the country remains competitive in the global market.
