New Delhi, March 7 (IANS) 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 country pledged to increase purchases of US civilian aircraft and related services, Bangladesh-based The Financial Express reported.

According to the agreement, the country’s national flag carrier, Biman Bangladesh Airlines, intends to purchase 14 Boeing aircraft, with an option to buy additional planes.

The proposed deal, which is subject to completion of legal procedures in both countries, is aimed at helping narrow the bilateral trade gap between Bangladesh and the United States, the report said.

However, the move 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 said.

Currently, Biman Bangladesh Airlines operates an all-Boeing fleet, and no Airbus aircraft have yet been delivered to the airline.

A senior commerce ministry official told 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 told the newspaper that the EU conveyed its concerns in a recent letter to Bangladesh’s commerce ministry, 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 said.

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 extend preferential market access to Bangladeshi exports.

–IANS

ag/na