Bangladesh reaches out to EU for FTA talks, eyes deals with UK, Australia and Canada

The government has sent a letter to the European Union (EU) seeking discussions on a free trade agreement (FTA) as part of advance preparations to address challenges following Bangladesh's graduation from the least developed country (LDC) category, Commerce Minister Khandaker Abdul Muktadir has said.

Initiatives would be taken in phases to pursue FTAs with Australia, Canada, and the United Kingdom as well, he told reporters this afternoon (28 February) after a meeting with senior administrative officials at the Sylhet Circuit House in the city.

The meeting was also attended by Ariful Haque Chowdhury, the minister of expatriates' welfare and overseas employment, and Water Resources Minister Shahid Uddin Chowdhury Annie.

Muktadir, also the industries minister, said the government would ensure that all outstanding wages and salaries of industrial workers are paid before Eid.

He said the market situation during Ramadan remains stable. "Prices of a few items, including lemons, had risen unnecessarily during the first couple of days, but have since returned to normal levels."

Responding to questions about a recent comment by Finance Minister Amir Khasru Mahmud Chowdhury regarding taxes, the commerce minister said the statement had been misrepresented in the media.

He explained that Bangladesh's tax-to-GDP ratio is much lower than that of neighbouring countries. "As a result, the revenue collected is largely spent on meeting government expenditures, leaving limited scope for development spending."

The finance minister had spoken about increasing the tax-to-GDP ratio, Muktadir said, adding that there would be no increase in taxes in the private sector.

Meanwhile, Minister Annie said work is underway on river and canal dredging, as well as construction and renovation of embankments in haor areas, ahead of the upcoming monsoon season.

Emphasising a zero-tolerance policy against corruption, he said no irregularities would be tolerated in these projects and described corruption-free development as one of the government's major challenges.

Annie noted that due to its hilly terrain, flash floods frequently affect the Sylhet region during the monsoon. Addressing this challenge, several projects are already ongoing, with more in the pipeline. Discussions are also underway at the Joint Rivers Commission, and necessary urgent measures will be taken, he added.