European investors have raised concerns about fairness in the trade environment of Bangladesh, warning that selective trade preferences could create an uneven playing field for foreign businesses.
The issue was highlighted during a pre-budget discussion with the National Board of Revenue (NBR), where the European Union Chamber of Commerce in Bangladesh (EuroCham) cautioned that extending benefits to certain partner countries may disadvantage European companies operating in the country.
EuroCham Chairperson Nuria Lopez noted that such measures could distort competition, although no specific countries or policies were identified.
The chamber emphasised the importance of stable and predictable policies, stating that long-term investors require consistency in taxation and trade regulations. Sudden policy changes or selective advantages, it warned, could weaken investor confidence and delay new investment decisions.
According to Bangladesh Bank, foreign direct investment (FDI) in Bangladesh stood at around $3 billion in 2023, before declining to approximately $1.47 billion in FY2024. Inflows showed signs of recovery in FY2025, reaching nearly $1.7 billion, indicating both volatility and gradual improvement in investor sentiment.
The concern is particularly relevant for the apparel sector. The European Union remains the largest export destination for Bangladesh’s garments, accounting for more than half of total shipments, according to the Export Promotion Bureau.
Industry observers warn that perceptions of unequal treatment could affect future investment, especially in value-added and sustainable textile production.
EuroCham has urged policymakers to ensure equal treatment for all investors, stressing that a level playing field is essential for maintaining competitiveness and attracting quality investment as Bangladesh prepares for its post-LDC transition.
