Bangladesh in Panic after India signs ‘Mother of all deals’ FTA with Europe, Yunus rushes to EU, fears devastation of…

Muhammad Yunus met the European Union’s Ambassador to Bangladesh, Michael Miller, and the Chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), Nuria López, in Dhaka.

New Delhi: The Muhammad Yunus-led Bangladesh government is in complete panic after India and the European Union signed the Free Trade Agreement (FTA). According to the reports, the Bangladesh government has asked the European Union to conclude a trade deal at the earliest. The office of Muhammad Yunus has released a statement where it has said that “the Chief Adviser has called for early FTA talks with the EU to ensure continued duty-free access.” Muhammad Yunus met the European Union’s Ambassador to Bangladesh, Michael Miller, and the Chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), Nuria López, in Dhaka.

In a statement issued by the Bangladesh government regarding the meeting, it said “Chief Adviser Professor Muhammad Yunus on Sunday called for the early launch of Free Trade Agreement (FTA) negotiations with the European Union. He stressed that it is essential to safeguard Bangladesh’s trade preferences in its largest export market once the existing duty-free access comes to an end in the coming years.”

Why Bangladesh appealed to the EU for an FTA

According to the government statement, “The Chief Adviser made these remarks during a courtesy meeting with Nuria López, Chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), at the state guest house Jamuna in Dhaka. The European Union’s Ambassador to Bangladesh, Michael Miller, was also present at the meeting.”

As per the reports, Muhammad Yunus, during the meeting, said that there is a need to accelerate European investment in Bangladesh. He also discussed how to ensure smooth trade relations between Bangladesh and the EU, and the need for further reforms to improve the country’s business environment.

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Chief Adviser Calls for Early FTA Talks with EU to Ensure Continued Duty-Free Access
DHAKA, February 1: Chief Adviser Professor Muhammad Yunus on Sunday called for an early start to Free Trade Agreement (FTA) negotiations with the European Union, stressing the need to safeguard… pic.twitter.com/EhiBHruDbK
— Chief Adviser of the Government of Bangladesh (@ChiefAdviserGoB) February 1, 2026

The Bangladesh government has signed an Economic Partnership Agreement (EPA) with Japan recently, which has paved the way for duty-free access for more than 7,300 Bangladeshi products to the world’s fourth-largest economy.

“Bangladesh is preparing to hold similar talks with other countries, including the European Union, in order to ensure continued duty-free access for its products—especially ready-made garments—in the EU market in the future.”

EuroCham Chairperson Nuria López has said that Bangladesh needs to immediately begin FTA negotiations, as the country could lose its existing trade preferences in the EU
once it graduates from the Least Developed Country (LDC) status.

Why is Bangladesh worried about the India–EU Free Trade Agreement?

It is important to note that the India–EU Free Trade Agreement will have a direct impact on the textile industries of Pakistan and Bangladesh. Currently, Bangladesh has duty-free access to the European market. This makes the Bangladeshi garments significantly cheaper. However, India will now also get the same benefit, and Bangladesh may not be able to compete with India’s production capacity and supply chain strength.

Until now, Bangladesh has been exporting garments to the EU without any tariffs under the “Everything But Arms” (EBA) scheme meant for Least Developed Countries (LDCs). In contrast, Indian exports were subject to tariffs ranging from 9 percent to 12 percent. But after the new FTA, tariffs on Indian textiles, leather, and marine products will be reduced to zero.