German Ambassador to Bangladesh Achim Troster has advised Bangladeshi companies to get ready for the challenges that may come as Germany enforces a new law that will scrutinise human rights in supply chain from 2023.

The new act on Corporate Due Diligence in Supply Chain will mandate German companies to ensure that there are no violations of human rights in their own business operations and in the supply chain.

"Therefore, Bangladeshi exporters, supplying to German companies, now have huge responsibilities to prepare themselves, especially in light of adoption of this supply chain law," he said at the celebrations of 50th anniversary of diplomatic relations of Bangladesh and Germany.

At the event organised by the Bangladesh-German Chamber of Commerce and Industry (BGCCI) at Radisson Blu, Dhaka on Sunday (March 13, 2022) evening, he also spoke about the future challenges that Bangladesh faces in terms of trade as GSP facility will be over by 2026 with Bangladesh graduating the LDC status. However, the EU provided a grace period for three years.

The EU will then offer GSP Plus, another preferential trade facility, but that comes with the conditions of labour rights, good governance, environment, human rights etc.

"One doesn't need to be perfect to qualify, but the compliance has to be ensured. I am confident that Bangladesh has extremely good chance to qualify [for GSP Plus]," Achim Troster said.

He said that Bangladesh has progressed much in terms of infrastructure and there has been political stability altogether accelerating economic growth. This creates new opportunities for strengthening cooperation between the two countries.

Bilateral trade between the two countries amount to over $7 billion, with Germany importing over $6 billion worth products, mostly textile. It is Bangladesh's second largest export market after US. The German envoy says Bangladesh needs to harness new export opportunities.

Bangladeshi businessmen said the trade volume can be worth $10 billion in next three years, but there should be stronger cooperation from both ends.

The Metropolitan Chamber of Commerce and Industry President Saiful Islam said Germany is a leader in renewable energy and eco-friendly industries and, therefore, should help Bangladesh, whose contribution to global emission is 0.4 percent but is a major victim of climate change.

Also, LDC graduation by Bangladesh means decline in market access and concessional loan. Therefore, the developed countries should help with affordable green technologies, he said at the event moderated by BGCCI Executive Adviser and CEO Shahed Akhtar.

Incepta Pharmaceuticals Ltd Chairman and Managing Director Abdul Muktadir said German engineers have been making significant contribution to the skills transfer to Bangladesh in the pharmaceutical sector.

He said the company, however, faces challenges in importing spare parts as it has to do it either from Singapore or India. It would be of much advantage if German companies have their outlets in Bangladesh, which is a rapidly growing pharmacy manufacturing country. He sought German embassy's support towards this end.

Bangladesh Ambassador to Germany, Mosharraf Hossain Bhuiyan, who joined the event online, said he is talking to German car manufacturers BMW and Mercedes who are eager to set up assembling plants in Bangladesh.

Foreign Minister AK Abdul Momen in a message, which was read out by the ministry DG (West Europe and EU) Faiyaz Murshid Kazi, said Bangladesh-Germany bilateral relation has reached a strategic depth.

He sought Germany's help in technical skills improvement of Bangladeshi workers and recruit in Germany.