As a least-developed country (LDC), Bangladesh is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. Since March 2017, Bangladesh is one of the countries under "enhanced engagement", which further incentivises and facilitates beneficiary countries' progress with regard to the 15 core international conventions covered in the GSP Regulation. Preferential exports to the EU are important for Bangladesh: in 2024, they amounted to €19.0 billion, making Bangladesh the largest exporter among EBA beneficiary countries by far.
The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.
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The garment industry is by far the most important industry for Bangladesh, and it contributes more than 80% to the country's total export earnings. This makes Bangladesh the world's second largest exporter of garments. From 2019 to 2024, garments exports grew by more than 30% to more than €48 billion.
Apparel and clothing articles, footwear and other textile articles dominate Bangladesh's export sector. These products are followed by fish products, articles made of leather, headgear and hides and skins.
Next to the EU, China, India, and the US are important trading partners for Bangladesh. China and India are the most important sources of imports, accounting for a combined share of 42% in 2024. The EU accounts for over 45% of the exports followed by the US and the UK.
Although the agricultural sector only contributes about 11% to the GDP (2024), it employs the majority of the workforce. Rice remains the most important agricultural product, together with jute and tea. Economic growth was mainly driven by the industrial sector (34%), of which the clothing and garment industry is the most important pillar. Other manufacturing activities include the production of fertilizer, paper, sugar, glass, and aluminium works. Services contribute 51% to the GDP rendering it the most important economic sector of Bangladesh.
Bangladesh is by far the most important beneficiary of the EBA arrangement. In 2024, about 96% of Bangladesh's total exports made use of the preferences granted under the EBA.
Total trade with the EU amounted to €19.9 billion in 2024. With a share of 20.7%, the EU is Bangladesh's most important trading partner and is particularly important as a market for Bangladesh: in 2024, 46.1% of Bangladesh's exports went to the EU market.
Almost all exports of Bangladesh to the EU market were eligible for EBA tariff preferences in 2024.
Bangladesh's preference utilisation rate in 2024.
Share of zero-duty imports from Bangladesh in 2024.
Most of Bangladesh's exports to the EU are eligible for preferences under the EBA. EBA-eligible imports from Bangladesh strongly increased until 2019 but then dropped sharply during COVID-19. They rebounded in 2022, reaching an all-time high, but decreased substantially in 2023 and 2024. Bangladesh's preference utilisation rate, which indicates the ratio of eligible to preferential imports, was consistently above 95% until 2022 but dropped to (a still high) level of 90% in 2023, recovering to 96% in 2024.
EU imports from Bangladesh remain heavily concentrated on garments, which accounted for 94% of all preferential imports in 2024. However, in the past three years, imports of plastics and food preparations increased fastest among the leading categories - they were about 50% higher in 2024 than in 2022; conversely, imports of vehicles decreased by 50% in the same period. The government makes an effort to further diversify the economy and has identified a number of priority sectors. The EBA preference utilisation rate recovered in 2024 to 96%, with virtually all product categories making better use of the preferences.
With the ratification of ILO Convention No. 138 (Minimum Age Convention) in 2022 Bangladesh has now ratified all of the conventions in matters of human rights, labour rights, environment, and good governance listed in the GSP Regulation. Nevertheless, the EU "enhanced engagement" with Bangladesh continues since 2017 due to concerns with the country's overall adherence to human and labour rights.
Over the period 2023 to 2025, Bangladesh went through significant political and economic changes. The political landscape in 2023 was marked by heightened polarisation and tensions between the ruling party and opposition forces, which eventually led to the fall of the government that had been in power for 15 years. From August 2024, Bangladesh was governed by an interim administration which prepared the path to genuinely competitive parliamentary elections and a referendum which took place in a peaceful atmosphere on 12 February 2026.
Aided by the enhanced engagement process, the following positive developments were noted in the period:
Remaining issues and priorities for future engagement are:
For more information about Bangladesh's compliance with the GSP conventions, see the convention compliance database. Also see the factsheet on Bangladesh.
Access all info about EU-Bangladesh relations on the International Partnerships website.