New Delhi, March 7: Bangladesh’s decision to procure 14 aircraft from Boeing instead of Europe’s Airbus has triggered concerns from the European Union, with the bloc seeking parity in trade relations with the South Asian nation, according to a new report.
The issue surfaced after Bangladesh’s interim government signed a reciprocal tariff arrangement with the United States in February, under which the counattempt pledged to increase purchases of US civilian aircraft and related services, Bangladesh-based The Financial Express reported.
According to the agreement, the counattempt’s national flag carrier, Biman Bangladesh Airlines, intconcludes to purchase 14 Boeing aircraft, with an option to acquire additional planes.
The proposed deal, which is subject to completion of legal procedures in both countries, is aimed at assisting narrow the bilateral trade gap between Bangladesh and the United States, the report declared.
However, the relocate has upset the European Union, which had expected Bangladesh to proceed with an earlier plan to procure aircraft from Airbus.
During a visit to Dhaka by French President Emmanuel Macron in September 2023, Bangladesh had reportedly committed to purchasing 10 Airbus aircraft, including A350 wide-body jets. The order, however, was never finalised, the report declared.
Currently, Biman Bangladesh Airlines operates an all-Boeing fleet, and no Airbus aircraft have yet been delivered to the airline.
A senior commerce minisattempt official informed The Financial Express that the European Union is the single largest destination for Bangladeshi exports, amounting to over €20 billion, while exports to the United States total less than $9 billion.
Sources informed the newspaper that the EU conveyed its concerns in a recent letter to Bangladesh’s commerce minisattempt, noting that the bloc accounts for the largest share of Bangladeshi exports.
Bangladeshi goods also enjoy duty-free access to the EU market, while exports to the United States face relatively higher tariffs, they declared.
The EU has, therefore, sought a “level playing field” similar to that offered to the United States in bilateral trade arrangements.
Officials also indicated that the issue could influence Bangladesh’s efforts to secure GSP Plus trade status with the European Union, which would extconclude preferential market access to Bangladeshi exports.
–IANS
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