Bangladesh

‘We want this political transition to be successful’

Says EU Ambassador Michael Miller in an interview with
EU Ambassador Michael Miller

The European Union sees a sea of change in post-August 5 Bangladesh and aims to support the political transition, broadening and deepening its ties with the country amid global geopolitical shifts.

European Investment Bank (EIB) Vice President Nicola Beer will visit Dhaka in January to explore EU support for Bangladesh's development.

Bangladesh is undertaking reforms in various sectors following the July uprising.

"We are looking at all the possibilities... to support the reform ambitions of the interim government," said EU Ambassador to Bangladesh Michael Miller in an exclusive interview with The Daily Star.

"You have the potential to serve as a symbol of stability, hope, and fundamental rights. We want to collaborate with you to ensure this becomes a remarkable success story," he said.

He expressed optimism about the progress in fundamental rights, democratisation, and rule of law in Bangladesh, aligning with EU values.

At least 19 EU diplomats met Chief Adviser Prof Muhammad Yunus in Dhaka on December 9.

Miller said the EU is committed to making the political transition successful, emphasising the need for a democratic election.

ECONOMIC TRANSITION

Under the Everything but Arms (EBA) scheme that provides duty benefits to the LDCs, Bangladesh's exports to the EU grew from €2.4 billion to €24 billion per year in the past two decades and some €2-3 billion in duties were saved annually.

With Bangladesh graduating out of LDC status by 2027, these benefits will end. The EU has another scheme called GSP Plus, which, however, is subject to stringent conditions of human rights, democracy, labour rights and environment.

The EU and Bangladesh are transitioning from their 2001 trade agreement to a Comprehensive Cooperation Partnership Agreement (CCPA), with negotiations starting in November.

Under the Global Gateway Initiative (GGI), the EIB has committed €400 million to renewable energy projects in Bangladesh. The January visit of EIB's Vice President is seen as a significant step to boost infrastructure, connectivity, and digitisation.

Now, with the political changeover in Bangladesh, the EU is doubling its efforts to work with Bangladesh.

"On the first hand, we have politically huge sympathy, huge interest… we want this political transition to be successful and we want it to end in a democratic election," Michael Miller said.

He said the EU is waiting for the reform commissions to conclude and then wants to help. Miller said the visit of the EIB vice president will look to explore how it can use financing to support Bangladesh's development.

"You get AAA-rated rates of lending interest rates, which you would not if you went to the market directly….," he added.

BANGLADESH'S REFORMS

The EU is engaging with Bangladesh's reform commissions to support their conclusions with financing and expertise, said Miller.

"We would support more transparency, accountability, and efficiency in using economic resources, addressing some of the structural impediments, policy challenges, or even how to ensure justice," Miller said.

FDI, LDC GRADUATION

Miller also said the EU can help Bangladesh by ensuring that the country has smooth LDC graduation, which is possible through protecting labour rights, environmental rights, and human rights.

"We are working with Bangladesh Bank to provide very cheap loans to the RMG sector," he said.

The EU is also keen to boost its FDI to Bangladesh from only two billion euros now. However, that will need simplifying the business procedures here.

"We are waiting for a clear signal that Bangladesh is 'open for business' in the form of efforts to tackle frictions experienced by our investors," he said.

The EU will work with its member states and work with the European Chamber of Commerce, he said, adding that the interim government has the right intention to improve the business environment.

FORMAL MIGRATION

The EU signed an agreement titled "Talent Partnership Project" in July this year aiming to match EU labour needs with Bangladeshi workers' qualifications by upgrading relevant skills and providing additional training.

"The project will initially focus on the ICT, construction, textile/garment, shipbuilding, agriculture, and hospitality/tourism sectors, which are of particular interest to a number of EU Member States," Miller said.

Currently Germany and Italy are active in this and eventually Romania and Greece will be coming in, he added.

GLOBAL GATEWAY INITIATIVE

In 2023, Bangladesh joined the GGI, an EU initiative for worldwide investment to set up networks of transport, energy, digital, research, education and even health -- both through finance and expertise.

Miller said the EU wants to ensure that the partner countries including Bangladesh maintain fundamental rights of their citizens and don't end up being indebted.

"The EU lending is of extremely good value for Bangladesh and is always going to respect EU procurement rules so you get the best value possible for money and it is always going to give you very high-quality investments," he said.

"In Bangladesh, you see huge potential for these investments," he added.

Comments

‘We want this political transition to be successful’

Says EU Ambassador Michael Miller in an interview with
EU Ambassador Michael Miller

The European Union sees a sea of change in post-August 5 Bangladesh and aims to support the political transition, broadening and deepening its ties with the country amid global geopolitical shifts.

European Investment Bank (EIB) Vice President Nicola Beer will visit Dhaka in January to explore EU support for Bangladesh's development.

Bangladesh is undertaking reforms in various sectors following the July uprising.

"We are looking at all the possibilities... to support the reform ambitions of the interim government," said EU Ambassador to Bangladesh Michael Miller in an exclusive interview with The Daily Star.

"You have the potential to serve as a symbol of stability, hope, and fundamental rights. We want to collaborate with you to ensure this becomes a remarkable success story," he said.

He expressed optimism about the progress in fundamental rights, democratisation, and rule of law in Bangladesh, aligning with EU values.

At least 19 EU diplomats met Chief Adviser Prof Muhammad Yunus in Dhaka on December 9.

Miller said the EU is committed to making the political transition successful, emphasising the need for a democratic election.

ECONOMIC TRANSITION

Under the Everything but Arms (EBA) scheme that provides duty benefits to the LDCs, Bangladesh's exports to the EU grew from €2.4 billion to €24 billion per year in the past two decades and some €2-3 billion in duties were saved annually.

With Bangladesh graduating out of LDC status by 2027, these benefits will end. The EU has another scheme called GSP Plus, which, however, is subject to stringent conditions of human rights, democracy, labour rights and environment.

The EU and Bangladesh are transitioning from their 2001 trade agreement to a Comprehensive Cooperation Partnership Agreement (CCPA), with negotiations starting in November.

Under the Global Gateway Initiative (GGI), the EIB has committed €400 million to renewable energy projects in Bangladesh. The January visit of EIB's Vice President is seen as a significant step to boost infrastructure, connectivity, and digitisation.

Now, with the political changeover in Bangladesh, the EU is doubling its efforts to work with Bangladesh.

"On the first hand, we have politically huge sympathy, huge interest… we want this political transition to be successful and we want it to end in a democratic election," Michael Miller said.

He said the EU is waiting for the reform commissions to conclude and then wants to help. Miller said the visit of the EIB vice president will look to explore how it can use financing to support Bangladesh's development.

"You get AAA-rated rates of lending interest rates, which you would not if you went to the market directly….," he added.

BANGLADESH'S REFORMS

The EU is engaging with Bangladesh's reform commissions to support their conclusions with financing and expertise, said Miller.

"We would support more transparency, accountability, and efficiency in using economic resources, addressing some of the structural impediments, policy challenges, or even how to ensure justice," Miller said.

FDI, LDC GRADUATION

Miller also said the EU can help Bangladesh by ensuring that the country has smooth LDC graduation, which is possible through protecting labour rights, environmental rights, and human rights.

"We are working with Bangladesh Bank to provide very cheap loans to the RMG sector," he said.

The EU is also keen to boost its FDI to Bangladesh from only two billion euros now. However, that will need simplifying the business procedures here.

"We are waiting for a clear signal that Bangladesh is 'open for business' in the form of efforts to tackle frictions experienced by our investors," he said.

The EU will work with its member states and work with the European Chamber of Commerce, he said, adding that the interim government has the right intention to improve the business environment.

FORMAL MIGRATION

The EU signed an agreement titled "Talent Partnership Project" in July this year aiming to match EU labour needs with Bangladeshi workers' qualifications by upgrading relevant skills and providing additional training.

"The project will initially focus on the ICT, construction, textile/garment, shipbuilding, agriculture, and hospitality/tourism sectors, which are of particular interest to a number of EU Member States," Miller said.

Currently Germany and Italy are active in this and eventually Romania and Greece will be coming in, he added.

GLOBAL GATEWAY INITIATIVE

In 2023, Bangladesh joined the GGI, an EU initiative for worldwide investment to set up networks of transport, energy, digital, research, education and even health -- both through finance and expertise.

Miller said the EU wants to ensure that the partner countries including Bangladesh maintain fundamental rights of their citizens and don't end up being indebted.

"The EU lending is of extremely good value for Bangladesh and is always going to respect EU procurement rules so you get the best value possible for money and it is always going to give you very high-quality investments," he said.

"In Bangladesh, you see huge potential for these investments," he added.

Comments

সংহতির অভাব সরকারের সংস্কার প্রচেষ্টার গুরুত্বপূর্ণ চ্যালেঞ্জ: নাহিদ

সংহতির অভাব সরকারের সংস্কার প্রচেষ্টার একটি গুরুত্বপূর্ণ চ্যালেঞ্জ হয়ে দাঁড়িয়েছে বলে বাসসকে জানিয়েছেন তথ্য ও সম্প্রচার মন্ত্রণালয়ের উপদেষ্টা মো. নাহিদ ইসলাম।

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