Covid pandemic affected Franco-Bangladeshi economic relationships

Economic relations between Bangladesh and France have been affected in 2020 by the Covid-19 pandemic.

Last year, the bilateral trade contracted for the first time in years and came down to EUR2.76 billion, showing a decrease of -15% compared to 2019, read a statement by the Embassy of France in Dhaka on Tuesday.

Fuelled mainly by the RMG sector and some leather products, which represent 98% of French imports from Bangladesh, the total value of imports decreased by 15% in a year down to EUR 2.52 billion in 2020. However France remains one of Bangladesh's largest export markets, and its third customer in the European Union, all products considered.

Unfortunately, French exports to Bangladesh decreased by 12% compared to 2019, amounting to EUR238 million. French exports are boosted by electrical machinery and industrial equipment, such as gas turbines & equipment manufactured by General Electric in Belfort, France. 

Consequently, the France-Bangladesh bilateral deficit which registered a threefold increase in the last ten years, came down to EUR2.23 billion last year. To reduce the huge trade deficit, France is eager to help Bangladesh in sectors such as power generation (including renewable energy), rail transportation, water treatment and all environment-related issues.

Due to the pandemic, a visit by Medef International, the French equivalent to FBCCI, which was scheduled for last April, got cancelled.

The individual strength of both France and Bangladesh are to be amply utilised and shared in order to consolidate the mutual economic and social benefits. France and its companies are committed to developing their action and establishing partnerships which would allow Bangladesh to reach its ambitious economic targets, read the statement.