EU, UK extend support to interim government’s reform, investment agenda

The European Union and the United Kingdom have reaffirmed their commitments to supporting Bangladesh's interim government in delivering reforms and its efforts to attract foreign investment.

EU Ambassador Michael Miller said the EU is committed to helping and supporting the interim government to implement reforms that meet the aspirations of the people and the private sector.

"We remain steadfast, as Bangladesh embarks on an ambitious and transformative reform agenda," said Miller in the opening speech at a session titled "Unlocking the Potential of Bangladesh for Investors in Renewable Energy" of the Bangladesh Investment Summit yesterday.

"I have three key messages for investors in Bangladesh. First, EU member states stand with Bangladesh as a top investment destination. Second, we support the interim government. And third, we share a common goal – to take meaningful action that fosters prosperity, promotes sustainable growth, mobilises investment, and combats climate change," he added.

According to a presentation, the EU has invested $1.3 billion in the country's clean energy sector through its Global Gateway initiative.

Miller further said, investors from EU member states are keen to invest in Bangladesh's renewable energy sector but emphasise the need for predictable, transparent, and non-discriminatory trade policies to ensure a competitive business environment.

UK keen to expand operations

Meanwhile, speaking at the summit's formal inaugural session, UK's trade envoy Baroness Winterton of Doncaster DBE extended the UK's full support to Bangladesh to chart a "peaceful transition" to an "inclusive, prosperous and democratic" future.

She said there is a fresh impetus for the two countries to refresh their bonds and work ever more closely together on economic, trade and investment fronts.

The envoy said she is aware that many British and international businesses see the growth and opportunities of this market and want to expand their operations here.

"But at the same time, we also hear concerns from businesses about laws, regulations and red tape that make it more difficult for them," she said, adding that they are keen to help Bangladesh take full advantage of global business through an enhanced and enabling environment that rationalises the cost of doing business, removes regulatory bottlenecks and ensures protection for intellectual property rights.

The UK welcomed BIDA's steps to implement as many reforms as quickly as possible – saying this is injecting confidence to foreign investors that Bangladesh is open for business.

She said one of the challenges that affect everyone in Dhaka is its infamous traffic, which really dents productivity.

"That is why London's transport authority, Transport for London, is working with Dhaka city authorities to test ideas that can help reduce traffic jams," Baroness Winterton said.

"We are providing technical expertise to BIDA to develop its analytical capability, continuing a collaboration that goes back more than 20 years."

As Bangladesh prepares to engage and enhance its trading relationships in the post-LDC era, the trade envoy said her government is providing technical assistance to the Ministry of Commerce to strengthen their capability on trade policy and negotiations.

The Revenue & Customs department of the UK will be providing capacity building support to the customs wing of the National Board of Revenue to enhance trade facilitation.

"Taken together, these initiatives constitute significant UK contributions for Bangladesh's LDC graduation process," she said.

Baroness Winterton pointed out that Bangladesh is the biggest beneficiary of the UK's trade preference scheme, the Developing Countries Trading Scheme.

"This gives Bangladesh duty free and quota free access to the UK market until 2029. And after that date, 92% of Bangladesh's exports will continue to get duty free access to the UK," said the British trade envoy.

The scheme also encouraged Bangladesh to diversify its exports to the UK beyond garments - laying the groundwork for Bangladesh's economic security ahead of LDC graduation next year.

She said their development financial institution, British International Investment, recognised Bangladesh as a "powerhouse market," and it is investing $450 million in Bangladeshi companies between 2022 and 2026.

Sitting alongside this, the trade envoy said their export credit agency, UK Export Finance, remains committed to supporting private sector growth with up to £2bn cover available to support projects in Bangladesh across all sectors.

Chief Adviser Muhammad Yunus attended the event as the chief guest. Advisers of the interim government, including Finance Adviser Dr Salahuddin Ahmed, Foreign Affairs Adviser Md Touhid Hossain, Commerce Adviser Sk Bashir Uddin, Law Adviser Dr Asif Nazrul and Executive Chairman of Bangladesh Investment Development Authority (BIDA), among others, joined the inaugural event.