Diplomatic Correspondent

Acknowledging the broader support and popularity of the interim government, Ambassador of the European Union (EU) to Bangladesh Michael Miller has said there has to be democratic elections at the end of the process, leading to a new parliament and a government with people’s mandate staying mindful of the “rule of law and respect” for fundamental rights.

“For us, these are principles that are at the core of the relationship between the European Union and Bangladesh,” the Head of the EU Delegation told UNB in his first interview after his arrival in Dhaka, noting that the ambition is “sky high” while the changes are always “difficult”.

The Bangladesh-EU partnership is seen as fast-evolving and dynamic; and last year, two sides celebrated 50 years of relations.

Ambassador Miller said the popularity of the Chief Adviser and interim government is very clear and the sense of common support across party lines is really very strong.

He said it is a difficult moment and perhaps not everything - not all reforms - can happen all at once but there has to be delivery of some “quick wins”.

Ambassador Miller said the government has to demonstrate that it is able to take forward reforms. “The ambition is sky high. The pressure from the street is extremely strong and somewhere here there has to be delivery of some quick wins which can still be structural in nature.”

“There has to be a process leading to elections. We think it's very important to get that process right and to give this interim government some time to demonstrate that it can reform,” he added.

The implementation is the most tricky, Miller said, adding that his message to the advisers is that they are not short of resources.

“We're certainly not short of political will. Please tell us what your priorities are, and then let us work very closely with you. We can do a lot,” he said.

As a newcomer arriving at a moment of unprecedented change, Ambassador Miller now looks forward to supporting the country’s transition and reform ambitions, underpinned by values dear to them both: good governance, democracy and respect for fundamental rights.

Good Governance across Board

The first round of negotiations on the new Partnership and Cooperation Agreement (PCA) between Bangladesh and the European Union (EU) was postponed in August.

The Ambassador said they had the sharing of a text for the new agreement between the EU and Bangladesh, which they shared with the Bangladeshi side two weeks ago.

The European Union will continue discussions with Bangladesh on a Partnership and Cooperation Agreement (PCA) and the intention of the future PCA is to upgrade their relations to include a wider range of policy areas, including climate change and security.

“We are now preparing a high-level mission from Brussels, which will come to Dhaka in the first week of November, and where we will not only discuss this new PCA but also which is upgrade, of course, of the of the treaty, and also the Joint Commission with the interim government,” Miller said.

So all of this to say, he said, there are strong political messages and what is important for them, beyond the political message, is that the transition as they want has to take place in a smooth manner.

“We wanted to have the ambition to introduce good governance across the board. Of course, this period has to be characterised by respect for the rule of law and human rights, which is what we see,” the envoy added.

Good Story to Tell

Ambassador Miller said they have a good story to tell on Bangladesh-EU relations and when he will leave in three or four years, he would want this partnership to be political and rights based, as well as commercial and development ones.

There is scope to broaden and deepen the relationship with what they are doing and they have a good starting point.

“But the scope to do more together is going to be in political fundamental forms, which you have embarked upon, and where we can perhaps help,” he said.

The envoy said if they can increase FDI to be more in line with the commercial relationship, he will consider that this is a good outcome.

“We have just set up a European Chamber of Commerce partnering with this in mind. So it's also about Bangladesh and the EU getting on the same page when it comes to the international rules based order. I can't imagine that Bangladesh is anywhere except on the same line as we are, which is that we need decisions to reflect common interests and engagement between states,” he said.

The EU is the main trade partner of Bangladesh as the country is a ready-made garment powerhouse and has made excellent use of duty- and quota-free access to the EU market, a reflection of the industriousness of its people and the appetite of the world for its products.

The EU says the next chapter in the success story of Bangladesh will be written as they help the country diversify its economy.

For this, the EU is promoting greater investment - in infrastructure, in connectivity, in digitalisation and in the private sector – via the EU's Global Gateway initiative as a pathway to secure, open and sustainable economic growth.

Three Things to Do

On the trade and economic cooperation side, the Ambassador said, there are basically three things they want to do.

The first is to help the government tackle the difficulty of doing business. “So, there has to be a one stop shop, not a 39 stop shop. That's so straightforward. And by doing this, by easing business, we will find it easier, rather than convince our own economic operators to invest,” said the Ambassador.

He said while the commercial relationship is “huge” and really “impressive”, the FDI relationship is not and it does not match them.

So, in comparison with some of the other countries in the region with which Bangladesh competes on the European market, the FDI stock is 10 times lower, he said, adding that this is something they need to work on together.

The second thing, when it comes to the priority for the economic relationship, is going to be how to remove bottlenecks.

“So it's energy supply, it's customs and it's transport as well, from ports to markets, all areas where we are very active and where the European Investment Bank is active, too,” he said.

So, the ease of doing business, the bottlenecks, and then it is trying to ensure that the transition to GSP plus, which is the graduation from LDC status, but that is also smooth, Miller said.

The envoy said the RMG sector is actually also very impressive with extremely advanced factories, and certainly the ones that he has visited are impressive.

“There will be a need to upgrade across the board. You certainly have a huge capacity. The challenge when it comes to the LDC graduation will be that in order for us to ensure that this is a very smooth transition, we will need the RMG sector to upgrade its occupational safety to ensure that it basically adopts a business model, which is circular economy,” Miller said.

It is very important that the country is applying all labour market standards and environmental standards, he said.

“We would encourage investment in Bangladesh to make sure that you move from a business model which is excellent quality, but RMG to something that's more value added,” Miller said.

On diversification, he said they need to explore with the authorities to see which sectors are where Bangladesh is competitive. “So, I would imagine this is leather. It could be pharmaceuticals. It could be light engineering.”

The reason he talked about this diversification is that currently, the commercial relationship is very narrowly focused, and the GSP plus approach they have in mind, shows that Bangladesh should not be too concentrated.

“So, it's time to plan ahead, to see this incredibly dynamic country of what other sectors you can be competitive in, and to prepare you to enter the European market, which I think is in your interest, but it's clearly also ours,” he added.

Regarding better price of the Bangladeshi products, the envoy said it was a shared responsibility.

Miller said the European consumers care about the reputation of the companies that manufacture their goods.

The EU said the record in building people-to-people ties is strong, with a particular focus on youth. Bangladesh is among the most important partners for EU Erasmus+ scholarships. The country also benefits from significant support to higher education institutions.

The Ambassador said they look forward to working closely with Bangladesh and can do more together in the international organisations.

“For us, what's happening in Ukraine is absolutely central to European security. So, there is no question that this will continue to dominate the political relationship that we have with our partners, including our close partners,” he said.

In the wider world, the EU and Bangladesh have been working together for many years to promote multilateral solutions to global challenges.