EU Wants Level-Playing Field for Airbus as Bangladesh Weighs Biman Aircraft Deal

🌏 Dhaka, Bangladesh — The European Union has urged Bangladesh to ensure a level-playing field for European companies including Airbus in government procurement and remove regulatory barriers that hinder the bloc’s business and investment in the country.

🤝 At a meeting with Commerce Minister Khandakar Abdul Muktadir in Dhaka on 6 September 2026, EU Ambassador to Bangladesh Michael Miller led ambassadors and representatives of all 27 EU member states in pressing for fair competition in public procurement, including in Bangladesh’s aircraft purchase plans.

✈ Miller specifically urged the government to take Airbus’s proposal to supply aircraft to Biman Bangladesh Airlines “very seriously”, as the national flag carrier moves ahead with its procurement plans following a $3.7 billion agreement with US-based Boeing.

💬 “Incredibly Competitive” Airbus Offer

💬 “In our view, Airbus has an incredible competitive offer. This should be taken very seriously, and we expect a swift conclusion to talks between Airbus and Biman,” Miller told reporters after the meeting.

🚢 The EU also called on Bangladesh to reconsider the legal requirement that 50% of the country’s seaborne imports and exports be carried by Bangladesh-flagged vessels, saying such requirements can create barriers to trade.

📊 The meeting followed two earlier discussions between the EU and the Commerce Ministry, held on 23 September 2025 and 2 March 2026, during which the bloc identified 61 non-tariff barriers affecting European businesses and investment in Bangladesh.

✅ The Commerce Ministry said 48 of the 61 issues have been resolved, while the remaining 13 are in the process of being addressed. The ministry also said the Airbus issue was among those it considered resolved.

📋 Bangladesh’s Position: Transparent Procurement

📊 Regarding Airbus, a report presented by the ministry at the meeting said proposals from Airbus and other aircraft manufacturers had been evaluated by an independent techno-financial committee. As a result, there was no scope for unfairness in the process, according to the report.

💬 “Maintaining transparency and fair competition in public procurement will benefit both Bangladesh and the European Union,” the ministry said.

📊 Miller, however, stressed the importance of ensuring that all companies can compete on equal terms in government procurement. “Government procurement decisions should be based on commercial merit so that European companies can compete equally with companies from other countries,” he said.

🛢 Boeing Deal Backdrop

📊 The EU ambassador’s remarks come against the backdrop of Bangladesh’s decision to purchase 14 aircraft from Boeing. On 30 April 2026, Biman signed a $3.7 billion agreement with Boeing to purchase the aircraft, which are scheduled to be delivered in phases between 2031 and 2035.

🌏 Earlier, during the Awami League government, Biman had initiated a process to purchase aircraft from Airbus to modernise and expand its fleet. The airline had announced an in-principle decision to purchase 10 Airbus aircraft. The process, however, was not finalised following the political change in August 2024.

📊 Subsequently, Bangladesh’s commercial relationship with the United States, US tariff policy and Boeing’s proposal became factors in the decision to sign the Boeing agreement. In July 2026, Civil Aviation and Tourism Minister M Rashiduzzaman Millat told TBS that the government had decided to proceed with the acquisition of 10 Airbus aircraft and hoped to sign an agreement by 31 August — which did not happen.

🚢 Flag Vessel Protection Act Controversy

📊 Another major issue raised by the EU is Bangladesh’s requirement that half of its seaborne imports and exports be transported by Bangladesh-flagged vessels. The requirement is contained in the Flag Vessel (Protection) Act 2019 and the Flag Vessel Protection Rules 2023.

📋 However, foreign vessels may be used if suitable Bangladeshi vessels are unavailable, subject to a no-objection certificate (NOC) from the Department of Shipping.

📊 Commerce Minister Muktadir said Bangladesh currently has 122 Bangladesh-flagged vessels — seven government-owned and 115 privately owned — while the country’s annual imports and exports are worth around $130 billion. The existing fleet does not have the capacity to carry half of that trade, he said.

💬 “Foreign vessels currently have to obtain an NOC from the Bangladesh Shipping Corporation to transport Bangladeshi goods, which is a kind of commercial barrier. We will take initiatives to remove this barrier by amending the Flag Vessel Protection Act,” Muktadir said.

📊 A senior commerce ministry official said the ministry had written to the shipping ministry outlining the EU’s concerns and explaining the role of Bangladesh-flagged vessels in transporting the country’s goods. The shipping ministry will review the matter and make a decision.

💰 Domestic Shipping Industry Concerns

💬 Azam J Chowdhury, Chairman of East Coast Group, a major maritime services company, told TBS that the existing law does not prevent importers and exporters from using foreign vessels when local vessels are unavailable. He cautioned, however, that removing the legal protection could put significant private investment at risk.

📊 “Three or four years ago, Bangladesh’s private sector had only 39 ocean-going vessels. Since then, just 14 entrepreneurs have invested $3.5 billion, increasing the number to 115 vessels,” he said.

🌏 Strategic Context: Bangladesh’s Geopolitical Balancing Act

📊 The EU’s concerted push on Airbus and the Flag Vessel Protection Act comes at a delicate moment for Bangladesh’s trade diplomacy. With the country preparing for LDC graduation and seeking an FTA with the EU, Dhaka must carefully balance its commercial relationships with the United States and Europe.

🌏 The $3.7 billion Boeing deal already anchors Bangladesh’s aviation procurement with US industry, while a parallel Airbus deal would diversify Biman’s fleet and signal balanced engagement with both major aerospace powers. For Biman’s operational flexibility — particularly on European routes where Airbus aircraft have efficiency advantages — a dual Boeing-Airbus fleet makes commercial sense.

🚢 On the Flag Vessel Act, the issue is more nuanced. While the EU’s call for liberalisation aligns with broader free-trade principles, Bangladesh’s domestic shipping industry has invested $3.5 billion in good faith under the existing legal protection. Any reform must therefore balance trade facilitation with the need to safeguard domestic industrial investment — a challenge that will require careful sequencing and stakeholder consultation.

🤝 For Bangladesh’s broader trade strategy, the EU engagement signals that Dhaka is no longer just a passive recipient of trade preferences but an active participant in shaping the rules of its commercial relationships with major partners. As the LDC graduation deadline approaches, this kind of bilateral engagement will only grow in importance — with the Airbus-Biman saga becoming a key test case for how Bangladesh navigates competing interests from the world’s two largest aerospace powers.