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On a note of readiness to expand trade and investment with Bangladesh, the European Union (EU) has listed out 60 types of non-tariff barriers (NTBs) as major hindrances and sought remedies.
The 27-nation economic bloc has outlined such barriers under 13 categories in a document compiled by the EU Delegation in collaboration with EU-member states, official sources said.
The EU has flagged several sector-specific obstacles affecting trade in agriculture, food and dairy products, and pharmaceuticals, which are blamed for blocking the tapping of full potential of trade with Bangladesh.
According to the EU document, a wide range of regulatory and administrative challenges continues to hinder the expansion of Bangladesh-EU economic ties.
The identified NTBs span critical areas like investment, services, customs procedures, government procurement policies, intellectual property rights (IPR), counterfeit goods, double taxation, and profit repatriation.
The EU notes that as Bangladesh is transitioning to a developing-country status in 2026, it will need to modernise and align commercial practices with international standards--particularly in areas of transparency, competition, efficiency, and innovation.
So, the Union suggests, the country's commitment to fair, transparent, and rules-based trade should remain unwavering.
"Upgrading regulatory and business practices will be essential to sustaining market confidence and expanding bilateral trade," the EU note of advice reads.
The economic bloc also reaffirms its willingness to collaborate with Dhaka on addressing the listed barriers through constructive policy dialogue.
It mentions the importance of ensuring a level playing field, not only for European investors and exporters but also for Bangladeshi businesses seeking to operate in a predictable and competitive environment.
Meanwhile, the Ministry of Commerce (MoC) has already asked more than two dozen ministries, divisions, and state agencies to provide opinions and necessary suggestions regarding the EU's concerns within seven days.
Currently, the Union is Bangladesh's largest export destination, largely on the back of its existing Everything But Arms (EBA) unilateral trading scheme.
Total two-way trade in goods reached €22.2 billion in 2024, with a €17.5-billion deficit for the EU, the stocktaking document shows.
Textiles dominate Bangladesh's exports to the EU with an overwhelming 94 per cent, while EU countries' exports to Bangladesh mainly include machinery and appliances (35 per cent) and chemical products (23 per cent).
Services trade between Bangladesh and the EU nations totalled €2.0 billion in 2023, with a surplus of €0.8 billion for the EU.
In the area of services and investment, foreign logistics companies face restrictions in licence renewals, and the Flag Vessel Protection Act of 2019 and related rules limit foreign participation in shipping. There are also constraints on foreign access to bonded warehouses, inland container depots, and quality-control operations.
The customs system is marked for inefficiencies, including misclassification of goods, burdensome import procedures, and delays in sample testing, taking up to 30 days. Chittagong Port is spotted as a bottleneck due to berthing delays, high storage costs, and informal expenses.
Fault is also found with government procurement. Barriers include the preference for U.S. FDA certification over EU's CE mark, non-transparent procurement practices, and tender rules that require local agents, which raise "corruption and counterfeit risks".
Agro-business is seen fraught with snags-like complex licensing, inconsistent standards, and discriminatory duties-particularly on filled milk powder. These are said to be deterring EU agricultural exporters. The non-recognition of international test reports and radiation-testing requirements also complicate market access.
In pharmaceuticals, hassles include slow approval processes for new products, noncompliance with international marketing codes, and logistical issues in cold chain and ground handling for sensitive medicines.
Regulatory and systemic challenges are also on the list. Beyond sectoral issues, the EU has raised concerns over (a) arbitrary tax assessments, excessive advance taxes, and discriminatory VAT practices (b) poor implementation of tax treaties, leading to withholding-tax violations and double taxation on royalties (c) weak enforcement and lack of a framework to protect seed-related intellectual property (d) regulatory hurdles restricting the ability of foreign companies to repatriate profits, dividends, and licensing fees.
The blacklisting of banks and disputes over letters of credit further complicate financial operations.
In case of visa and work permits, "non-transparent and politically influenced" approval processes deter foreign professionals.
In the domain of dispute resolution, the absence of an independent neutral mechanism for resolving commercial disputes is noticed.
Experts believe tackling these non-tariff barriers would unlock significant trade and investment opportunities for both sides and support Bangladesh's post-LDC economic aspirations.
Contacted over the conundrum, commerce secretary Mahbubur Rahman said, "Most of the issues raised by the EU are functional. We have said to the EU that we will sit for meeting on the issue. Earlier, the EU was concerned over some issues which have already been addressed."
He mentions that maximum of the issues raised by the EU are process related--legal-and regulations- related issues are fewer.
On some issues like pharmaceutical, "we will write to the Directorate-General of Drug Administration (DGDA), if necessary. They have raised question about product registration in the context of pharmaceuticals, and we have requested the EU to inform the international practice on the issue so that Bangladesh can take necessary step as it has good reputation in the field of pharmaceuticals."
Distinguished Fellow at the Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman says those who face obstacles in their trade-and investment activities in Bangladesh, the trade-and investment partners and development partners, will continue to have increasing demands on Bangladesh now.
He notes that the EU has assured of continuing to provide Bangladesh with duty-free market access for an additional three years following its graduation from least-developed-country (LDC) status.
"Bangladesh's focus should move beyond viewing EU concerns merely as bargaining points linked to duty-free benefits. Instead, reforms aimed at improving governance, strengthening institutional capacity, and dismantling trade-and investment obstacles should be prioritized," he told The Financial Express.
He stresses that fostering a transparent and business-friendly environment would not only protect export privileges but also enhance Bangladesh's global competitiveness.
To meet these expectations, Bangladesh should adopt a comprehensive action plan to address the EU concerns on a priority basis.
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