The European Union has formulated a new tax-free facility law, EBA, and to maintain it for Bangladesh, has recommended amendments to labour law.
The suggestion was made on Monday (Oct 21), at a joint Bangladesh-EU meeting. EU has said that unless labour rights are ensured, tax free entry to EU countries may be adversely impacted.
An official who was present at the meeting said: “the issue of tax free entry to European markets will depend on how Bangladesh carries out negotiations in the next 18 to 24 months.”
The issue of tax free entry to Europe will be finalized at the European parliament and so, strong relation has to be nurtured with all EU nations.
In 2001, when the Bangladesh-EU cooperation agreement was signed, development assistance was given priority, but now, the reality is totally different.
Currently, foreign support is not even .5 per cent. Bangladesh is interested in trade, investment, while EU is focusing on human rights, democracy, freedom of speech plus other socio-political issues, said the official.
The official said: “EU has talked about a roadmap and the government will take a decision after interacting with all sides.”
Bangladesh needs time to establish labour rights similar to that in the West, added the official.
“We have amended labour law five times and, if necessary, another round of amendments will be done.”
Foreign secretary M Shahidul Huq, said: “the PM has asked us to keep a close relation with Europe and we are alert on the matter; the suggestions made by the PM at the envoy conference held in London last May are being implemented.”
We want to carry out dialogue with EU to ensure that all facilities awarded to Bangladesh remain, he added.