A17-member advisory panel formed by the government will oversee and guide overall activities leading to the signing of a proposed free- trade agreement (FTA) with the European Union (EU) for a win-win deal.
Sources say the high-level committee comprises top bureaucrats, trade bodies, and economic think-tanks.
According to trade analysts, the convergence of duty-facility losses by Bangladesh stemming from the upcoming least-developed country (LDC) graduation with the competitive asymmetry created by India and Vietnam's newly weaponised FTAs is a matter of concern that has sparked urgent calls for a radical re-engineering of the country's economic diplomacy and product mix.
Meantime, the commerce ministry on July 26 issued an official notification appointing the commerce minister as the chairperson of the panel, with the Head of FTA Wing of the ministry serving as member-secretary.
The committee brings together key government policymakers, major business-chamber heads and leading economic think-tank leaders to formulate negotiating strategies and ensure trade alignment.
From government and regulators, the committee includes secretaries of the Ministry of Commerce, Finance Division, the Ministry of Foreign Affairs, and the Prime Minister's Office (PMO), alongside the chairmen of the Bangladesh Trade and Tariff Commission (BTTC) and the National Board of Revenue (NBR).
Private-sector representations include presidents of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the chairperson of EuroCham Bangladesh.
From economic think-tanks is the executive director of the Centre for Policy Dialogue (CPD), chairmen of Research and Policy Integration for Development (RAPID), Policy Exchange Bangladesh, and Policy Research Institute (PRI), alongside the CEO of Bangladesh Foreign Trade Institute (BFTI).
According to the office order, signed by joint secretary Mahbuba Khatun, the committee's key mandates include monitoring the overall activities and negotiation proceedings of the core Bangladesh negotiating team.
It would also provide advice, technical opinions, and solutions on emerging negotiation issues and trade-policy dynamics during talks while it could co-opt additional members or seek sector-specific expert opinions "whenever necessary to safeguard national interests", according to the notification.
Insiders say the formation of this advisory body is a crucial policy measure as Bangladesh prepares for its upcoming graduation from LDC status, as, once graduated, Bangladesh will lose its Everything But Arms (EBA) initiative under the EU's Generalised System of Preferences (GSP), which currently provides duty-free and quota-free access to the European market-the country's largest export destination not only for ready-made garments (RMG) but also for other exportable goods.
Incorporating private-sector apex bodies like BGMEA, BKMEA and FBCCI and trade think-tanks CPD, PRI and RAPID signals a collaborative approach between the government and industry to negotiate favorable trade terms, tariffs, rules of origin, and sustainability requirements.
Asked about the development on the trade front, BGMEA president Mahmud Hasan Khan said both sides should benefit through signing any FTA.
"If signed, Bangladesh will get or sustain duty-free market access for RMG which might face up to 12-percent duty once graduated. And EU consumers will be ultimately benefitted once products enter without 12-percent duty," he explains.
Besides, Bangladesh buys EU-branded machinery manufactured in China which also benefits the EU, Mr Khan said, adding that there are government-to-government discussions regarding the FTA signing while the trade body will also sit with the EU ambassador once he comes back after enjoying holiday shortly.
The advisory committee members said they were yet to hold any meeting and could explain more once the members meet formally.
Talking to The Financial Express, Chairman of Policy Exchange Bangladesh Dr M Masrur Reaz said Bangladesh being an LDC is enjoying preference-based market access which is time-bound and temporary and it needs to sign trade agreements to enhance trade competitiveness through predictable market access and tariff structure.
"The EU is a very important market for Bangladesh where more than 50 per cent of overall exports are destined not only for RMG but also to diversify potential non-RMG exports."
Besides, under the EU-Vietnam FTA, the EU tariffs on Vietnamese exports are being progressively reduced to reach zero by 2027 while once implemented, the EU-India FTA will give India preferential access in sectors that overlap closely with Bangladesh's, including apparel, textiles, leather and footwear.
On the other hand, Bangladeshi RMG will face 9.0-percent to 12-percent duty after graduation and three years of transition period.
"FTA with EU is the most important for Bangladesh not only to diversify products exports but also to sustain the existing market access," Mr Reaz said, adding that trade agreements also help to rationalise tariff structure but also attract foreign direct investment as those accelerate local reforms.
With both the EU-India and EU-Vietnam FTAs in force, Bangladesh's overall exports to the bloc could fall by up to 36 per cent and the rate is 44 per cent for garment, according to a latest RAPID research paper.
A Bangladesh-EU FTA could limit the overall export decline to around 16 per cent and garments to19 per cent, it shows.
According to Eurostat data, Bangladesh garment exports to the EU stood at 19.41 billion euros in 2025 while the figure was 14.29 billion euros in 2021.
