A combination of political shifts and desperate diplomatic maneuvers to appease US President Donald Trump has pushed Bangladesh into an unprecedented economic and commercial confrontation with the 27 member states of the European Union (EU). The tug-of-war between Boeing and Airbus, which began during the previous Awami League administration, is no longer merely a commercial rivalry between American and European aircraft manufacturers; it has escalated into a full-blown diplomatic and trade war for Bangladesh.

Airbus Deal Under Sheikh Hasina and Blocking the US Route

Following the US Treasury Department's sanctions in December 2021 on RAB and several senior police officials, the Sheikh Hasina administration decided to avoid major procurement from the United States. Despite extensive efforts by then-US Ambassador Peter Haas to secure the market for Boeing, those attempts proved unsuccessful. In May 2023, a joint declaration signed in London confirmed the purchase of 10 Airbus aircraft from France, backed by long-term, low-interest credit facilities provided by the UK and European partners under the UK Export Finance (UKEF) scheme. During his visit to Dhaka in September 2023, French President Emmanuel Macron personally commended this progress.

Pivot by the Interim Government and Europe’s Stern Warning

Following the political transition on August 5, 2024, a major shift occurred in Bangladesh’s international diplomacy. Seeking to curry favor with Donald Trump and support US commercial strategies, the interim government began pivoting toward purchasing American Boeing aircraft instead of the European consortium's fleet. Former Commerce Adviser Bashiruddin went so far as to commit to buying 25 Boeing aircraft—a decision about which even Biman Bangladesh Airlines officials were kept in the dark.

In response, four influential European ambassadors—representing France, the UK, Germany, and the EU—held a joint press conference in Dhaka to publicly express their indignation. On November 26 of last year, German Ambassador Dr. Rüdiger Lotz issued a clear warning that canceling the Airbus agreement would jeopardize Bangladesh's eligibility for the 'GSP+' scheme and threaten future Free Trade Agreement (FTA) negotiations for the ready-made garment (RMG) sector. Although attempts were made to defuse the tension through assurances and draft proposals to acquire 'Eurofighter Typhoon' jet fighters from Italy, these measures failed to appease the European powers.

Tareq Rahman’s Boeing Preference and Trump’s Letter

Upon assuming power following the elections, the new government led by Tareq Rahman continued along the path established by the interim administration. On April 30, a primary agreement was finalized between Biman Bangladesh Airlines and Boeing for the purchase of 14 aircraft valued at $3.7 billion (approximately BDT 45,408 crore). According to a post on X (formerly Twitter) by Trump’s Special Envoy Sergio Gor, Bangladesh additionally agreed to purchase 11 more Boeing aircraft. Minister of Civil Aviation and Tourism M. Rashduzzaman Millat acknowledged to reporters that the decision was primarily made to accommodate President Trump’s request. In response, President Trump personally sent a letter of appreciation to Prime Minister Tareq Rahman, stating, "Boeing will not disappoint you."

27 Ambassadors Gather in Dhaka: A Rare Diplomatic Show of Force

Political and economic analysts consider it unprecedented in Bangladesh’s history for ambassadors and senior representatives from all 27 EU nations to convene jointly at the Ministry of Commerce over a commercial procurement issue. Typically, head-of-mission meetings involving all EU member states are held exclusively with the head of government, rather than an individual ministry or minister.

Following the meeting, EU Ambassador Michael Miller firmly emphasized the necessity of ensuring a 'level playing field' in public procurement and urged that the commercial merits of both Airbus and Boeing be evaluated transparently. The EU delivered a clear message: while they do not object to Bangladesh purchasing Boeing aircraft from the US, breaching existing agreements with Europe would carry severe commercial consequences.

Heavy Blow to the Garment Sector and Growing Uncertainty

Bangladesh's economy and RMG sector risk becoming the primary casualties in this asymmetric game of political appeasement. According to EU statistics, Bangladesh's RMG exports to the European market plummeted by nearly 19% in the first four months of this year. Meanwhile, India has signed a Free Trade Agreement with the EU and is actively capturing market share.

The potential loss of duty-free and quota-free access or exclusion from GSP+ status would deal a devastating blow to Bangladesh's primary export sector. Caught between domestic economic strains—including budget shortfalls in power and energy—and spending billions of dollars on US procurement to bolster a loss-making national carrier, the Tareq Rahman administration faces a profound dilemma. Observers are now left asking who will ultimately bear the heavy cost if access to a massive market of European consumers is compromised to satisfy US demands.

Balanced Diplomacy is the Path Forward: Bangladesh Must Return to the Father of the Nation’s Timeless Philosophy

Bangladesh is currently navigating a severe crisis in global politics and economics. The diplomatic friction between the US and the EU over Boeing and Airbus has exposed the nation's trade and economy to significant vulnerabilities. In this volatile and complex international environment, the balanced foreign policy pursued by Sheikh Hasina offers a viable path forward.

Remaining firmly anchored in the core principle of the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman—"Friendship to all, malice toward none"—can safeguard Bangladesh from economic distress. Safeguarding national sovereignty and commercial interests without subservience to any single power remains the imperative of the hour.

Author: Anwaruzzaman Chowdhury, Politician, Mayor, Sylhet City Corporation.