Ambassador and head of delegation of the European Union in Bangladesh Pierre Mayaudon on Wednesday termed the safety and security situation in Bangladesh a strong deterrent to foreign investors in considering setting up operations here. At a monthly luncheon meeting hosted by the Foreign Investors’ Chamber of Commerce and Industry at Hotel Westin in Dhaka, Mayaudon said they are also concerned over the recent killings of intellectuals and citizens in Bangladesh. ‘Of course, we cannot engage in business without discussing safety and security policy,’ the EU ambassador told the meeting as its chief guest. He referred to the recent killings and said it is a strong deterrent to foreign investors in considering operability here. Mayaudon said in 2015 Bangladesh attracted only 2 billion euros in foreign direct investment, with the EU private sector contributing 21.5 per cent.The country can attract more FDI by ensuring less corruption, better governance, more clarity in regulatory issues, more visibility of special economic zones, and security in the country, he added. Mayaudon also suggested diversifying Bangladesh’s export basket to fully avail the benefits of the duty- and quota-free market access to the EU, as to date the country’s exports to the bloc has remained dominated by apparel products.The ambassador said the EU also plans to hold a Bangladesh-EU business climate dialogue under the EU Business Council formed last year to address the challenges faced by EU investors in the country. The challenges, he said, are related to the regulatory framework, governance, access to market, and safety of investment. The issues will be discussed at the dialogue scheduled for May. Mayaudon said the EU intends to extend its economic relationship with Bangladesh beyond the dominance of one sector—readymade garment.He also suggested that the government and the private sector should get ready to qualify for the GSP Plus benefits in the EU market when Bangladesh graduates to the middle income country status. He pointed out that Bangladesh will lose the GSP benefits once it graduates to the middle income country status, probably after 2021, from its current status of a least developed country. At the meeting FICCI president Rupali Chowdhury described FICCI as a platform of foreign companies operating in Bangladesh. As most of the companies hail from the EU region, Rupali maintained that the FICCI could play an important role in the country’s economic and social development. FICCI executive director Jamil Osman, executive committee member Shadab Ahmed Khan, and representatives of a number of foreign companies also spoke at the programme.
