EU wants 'level-playing field' for Airbus
Michael Miller says Airbus has an ‘incredibly competitive’ offer as Dhaka considers further aircraft purchases for Biman
Highlights:
- EU envoy urges fair competition between Airbus and Boeing
- Airbus has an "incredibly competitive" offer, Miller says
- Biman signed a $3.7 billion deal for 14 Boeing aircraft
- Airbus negotiations continue despite Biman's Boeing agreement
- Revised Airbus proposal includes four A350-900s and six A321neos
- Bangladesh aims to modernise Biman while balancing global partnerships
The European Union has urged Bangladesh to ensure a level-playing field for European companies including Airbus in government procurement and remove regulatory barriers that hinder the bloc's business and investment in the country.
At a meeting with Commerce Minister Khandakar Abdul Muktadir in Dhaka today (6 September), EU Ambassador to Bangladesh Michael Miller led ambassadors and representatives of all 27 EU member states in pressing for fair competition in public procurement, including in Bangladesh's aircraft purchase plans.
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Miller specifically urged the government to take Airbus's proposal to supply aircraft to Biman Bangladesh Airlines "very seriously", as the national flag carrier moves ahead with its procurement plans following a $3.7 billion agreement with US-based Boeing.
"In our view, Airbus has an incredible competitive offer. This should be taken very seriously, and we expect a swift conclusion to talks between Airbus and Biman," Miller told reporters after the meeting.
The EU also called on Bangladesh to reconsider the legal requirement that 50% of the country's seaborne imports and exports be carried by Bangladesh-flagged vessels, saying such requirements can create barriers to trade.
The meeting followed two earlier discussions between the EU and the Commerce Ministry, held on 23 September 2025 and 2 March this year, during which the bloc identified 61 non-tariff barriers affecting European businesses and investment in Bangladesh.
The Commerce Ministry said 48 of the 61 issues have been resolved, while the remaining 13 are in the process of being addressed. The ministry also said the Airbus issue was among those it considered resolved.
Regarding Airbus, a report presented by the ministry at yesterday's meeting said proposals from Airbus and other aircraft manufacturers had been evaluated by an independent techno-financial committee.
As a result, there was no scope for unfairness in the process, according to the report.
Maintaining transparency and fair competition in public procurement will benefit both Bangladesh and the European Union.
Miller, however, stressed the importance of ensuring that all companies can compete on equal terms in government procurement.
"Government procurement decisions should be based on commercial merit so that European companies can compete equally with companies from other countries," he said.
Airbus proposal remains on the table
The EU ambassador's remarks come against the backdrop of Bangladesh's decision to purchase 14 aircraft from Boeing.
On 30 April, Biman signed a $3.7 billion agreement with Boeing to purchase the aircraft, which are scheduled to be delivered in phases between 2031 and 2035.
Earlier, during the Awami League government, Biman had initiated a process to purchase aircraft from Airbus to modernise and expand its fleet. The airline had announced an in-principle decision to purchase 10 Airbus aircraft.
The process, however, was not finalised following the political change in August 2024. Subsequently, Bangladesh's commercial relationship with the United States, US tariff policy and Boeing's proposal became factors in the decision to sign the Boeing agreement.
Talks with Airbus did not stop altogether.
In July, Civil Aviation and Tourism Minister M Rashiduzzaman Millat told TBS that the government had decided to proceed with the acquisition of 10 Airbus aircraft and hoped to sign an agreement by 31 August, which did not happen.
EU wants flag-vessel requirement eased
Another major issue raised by the EU is Bangladesh's requirement that half of its seaborne imports and exports be transported by Bangladesh-flagged vessels.
The requirement is contained in the Flag Vessel (Protection) Act 2019 and the Flag Vessel Protection Rules 2023. Under the rules, 50% of Bangladesh's imports and exports by sea are required to be carried on Bangladesh-flagged vessels.
However, foreign vessels may be used if suitable Bangladeshi vessels are unavailable, subject to a no-objection certificate from the Department of Shipping.
Commerce Minister Muktadir said Bangladesh currently has 122 Bangladesh-flagged vessels – seven government-owned and 115 privately owned – while the country's annual imports and exports are worth around $130 billion.
The existing fleet does not have the capacity to carry half of that trade, he said.
"Foreign vessels currently have to obtain an NOC from the Bangladesh Shipping Corporation to transport Bangladeshi goods, which is a kind of commercial barrier. We will take initiatives to remove this barrier by amending the Flag Vessel Protection Act," he said.
A senior commerce ministry official said the ministry had written to the shipping ministry outlining the EU's concerns and explaining the role of Bangladesh-flagged vessels in transporting the country's goods. The shipping ministry will review the matter and make a decision, the official said.
Azam J Chowdhury, chairman of East Coast Group, a major maritime services company, told TBS that the existing law does not prevent importers and exporters from using foreign vessels when local vessels are unavailable.
He cautioned, however, that removing the legal protection could put significant private investment at risk.
Three or four years ago, Bangladesh's private sector had only 39 ocean-going vessels. Since then, just 14 entrepreneurs have invested $3.5 billion, increasing the number to 115 vessels, he said.
"This investment came because of legal support. If this facility is withdrawn, this huge investment will be put at risk," he added.
EU seeks wider access to logistics sector
The EU is also seeking greater opportunities for foreign companies to invest with 100% ownership in Bangladesh's logistics sector.
Other recommendations include introducing service-contract arrangements to improve locomotive management and make transportation of goods from seaports to inland container depots faster and easier, as well as expanding investment opportunities in freight forwarding.
Muktadir said it has already taken steps to address several of these concerns.
Former Dhaka Chamber of Commerce and Industry president Abul Kashem Khan said Bangladesh has not attracted as much foreign investment in logistics as it should have.
Restrictions on foreign investors' ownership had been removed in the latest budget, he said, adding that simplifying licensing procedures would encourage more investment.
"Bangladesh needs investment in logistics to expand its economy. Therefore, the initiative to simplify the rules and regulations is positive," he said.
LDC graduation, FTA talks
Bangladesh is also seeking EU support for its proposal to defer its graduation from the UN's least developed country category by three years.
"We hope the EU will support Bangladesh's proposal to defer its LDC graduation, whether through a vote or another process," the commerce minister said.
He said the EU is Bangladesh's largest export market and that preparatory discussions are set to begin on a formal Free Trade Agreement and an Investment Protection Agreement with the bloc.
Miller said the European Commission had responded positively after receiving Bangladesh's formal proposals on the two agreements. Joint technical discussions could begin this week once the necessary approvals from EU member states are completed.
He stressed that deeper economic cooperation would require a transparent, stable and competitive business environment.
"Maintaining transparency and fair competition in public procurement will benefit both Bangladesh and the European Union," Miller said.
13 EU recommendations remain unresolved
According to commerce ministry sources, 13 issues identified by the EU have yet to be fully resolved.
These include the licensing issue for foreign-owned logistics companies, although the ministry has separately said steps have been taken to resolve licensing complications. Other pending issues include the legal requirement for Bangladesh-flagged vessels, simplification of temporary import and re-export procedures, and further streamlining of IRC and import registration.
The government has already reduced six steps from the import registration process, according to the ministry.
Other pending recommendations include addressing slow rail freight services, reforming navy tenders, reducing the time required to amend letters of credit, simplifying licensing requirements, introducing EU-recommended ground-handling guidelines, strengthening intellectual property rights protection and preventing counterfeit goods.
The government plans to address the navy tender issue through a proposed Defence Procurement Act 2026, while amendments to the Public Procurement Rules 2025 are being considered to reduce the time required for LC amendments.
The government is also working on a standard operating procedure for ground handling and plans to amend the Trademarks Act 2009 to strengthen intellectual property protection.
Recommendations concerning double taxation of royalties, visas, work permits and registration also remain unresolved.
