European Union (EU) Ambassador to Bangladesh Pierre Mayaudon on Friday said the EU and Bangladesh trade relations might reach a new height if the government here can ensure a more attractive and friendlier environment.

‘The EU as a trading block of 28 member countries is already the number one investment partner of Bangladesh. But, we consider that we could certainly reach a new height provided that the business environment becomes more attractive and more friendly,’ he said.

The EU envoy came up with the remarks after a meeting of a sub-group on the trade and cooperation of joint economic commission of EU Bangladesh trade and economic cooperation at the state guest house Padma.

Pierre Mayaudon said they discussed various issues, including improving trade relations between Bangladesh and the EU countries, identifying trade barriers and the necessary steps needed to be taken to remove the barriers.

He said they have a lengthy discussion on economic and investment environment in Bangladesh and the new EU Business Council Bangladesh.

The Business Council, he said, aims at identifying what are the main obstacles to stronger and more sustainable economic relations between EU and Bangladesh, including in terms of export from Bangladesh to the EU and EU investment in Bangladesh.

Asked about the main barriers to making investment in Bangladesh, he said, ‘I think the private sector will be in a better place to comment on that.’

He mentioned that there are some tariff and non-tariff barriers that need to be addressed; especially import duties are very high here.

The EU diplomat said non-tariff barriers like non-transparent rules and legally established regulatory framework are the areas on which they are working with the government.

Replying to another question, the EU envoy said they have taken a good note of interest of the Bangladesh government to see more foreign investment in some important sectors like pharmaceutical, ICT, shipbuilding and leather industry.

He said they have appreciated Bangladesh's progress, including the recent one in terms of the country's export to the EU market despite the difficult circumstances.

Pierre Mayaudon said they discussed the progress on sustainability compact which was jointly signed by the Bangladesh, the EU, ILO and the USA following the Rana Plaza tragedy. ‘We received some renewed commitments from the government of Bangladesh that the implementation of rules and regulations related to the amended Bangladesh Labour Act that would be probably issued by April this year.’

He said they also found some positive indications that the amended EPZ law was in due progress and should be finalised without further delay.

The EU envoy said they also discussed the EU research innovation programme by the name of Horizon 2020 that could assist Bangladesh in building a knowledge-based economy.

After the meeting, Pierre Mayaudon on behalf of the EU and Civil Aviation and Tourism Ministry additional secretary Abu Hena M Rahmatullah Muneem signed a deal on flight operation titled 'Bangladesh-EU Horizontal Aviation.

Pierre Mayaudon said the technical agreement was signed to improve connectivity between Bangladesh and EU countries.

Additional Commerce Secretary, Free Trade Agreement (FTA) wing, Manoj Kumar Roy and Deputy Chief of the EU South and South East Asia unit Diana Acconcia led the Bangladeshand EU sides respectively at the meeting.

EU Ambassador Pierre Mayaudon was present in the meeting on the EU side comprising 14 members.