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Bangladesh’s Airbus exclusion could affect EU trade ties: German envoy

Excluding the European manufacturer Airbus from Biman Bangladesh Airlines’ aircraft procurement process could affect Bangladesh’s bilateral trade relations with the European Union (EU), German Ambassador Dr. Rüdiger Lotz has said.

Speaking at a DCAB Talk organised by the Diplomatic Correspondents Association, Bangladesh (DCAB) at the National Press Club on Wednesday (26 November), the ambassador warned that the decision could even influence ongoing GSP Plus discussions.

The DCAB Talk was presided over by DCAB President AKM Moinuddin, with Secretary General Arifuzzaman Mamun also speaking.

“We are one of Bangladesh’s most important business partners and hope that this relationship continues,” Ambassador Lotz said. He added, “Airbus is an excellent product, particularly for a rapidly growing aviation market like Bangladesh. While I am not an aviation industry representative, it is certainly a strong option for the country.”

The ambassador noted that bilateral economic decisions can influence the environment of various discussions, including GSP Plus negotiations, and that major decisions such as purchasing Airbus aircraft help set the tone for such talks.

“Of course, this is Bangladesh’s sovereign decision. But, like personal or business decisions, every choice has broader implications,” he said.

Pressure to include the European manufacturer Airbus in government discussions on new aircraft procurement has recently intensified. In a joint statement at the French Embassy in Dhaka, ambassadors from the UK, France, Germany, and the European Union expressed hope that Airbus would be considered “fairly” in the process.

EU Ambassador Michael Miller said Bangladesh’s aviation sector has enormous growth potential and that the EU should have an “appropriate role” in related decision-making. He emphasised the importance of ensuring a “level playing field” so European companies can compete on merit.

Meanwhile, amid trade tensions with the United States, the interim government in July announced a decision to purchase 25 aircraft from the US manufacturer Boeing, creating uncertainty over the earlier commitment to buy 10 large Airbus aircraft.

The previous Awami League government had pledged to purchase Airbus aircraft, but since the change of government in August 2024, little progress has been made on that initiative. To reduce the trade deficit under pressure from former US President Trump, Commerce Secretary Mahbubur Rahman confirmed in July that the earlier plan would be revised, finalising the order of 25 Boeing aircraft for Biman Bangladesh Airlines.