Italy was among the first countries to recognize Bangladesh post-independence on February 12, 1972, subsequently establishing formal diplomatic relations in 1973. Italy also backed Bangladesh’s admission into the United Nations in 1974. Over the years, high-level visits have bolstered the bilateral ties between the two nations. Most notably, the engagement has deepened since the Prime Minister of Bangladesh’s visit to Rome in 2014 for the Asia-Europe Meeting (ASEM), marking the beginning of a strategic economic partnership. The focus now is on evaluating current interactions and identifying future opportunities in Bangladesh-Italy relations.
Defense Relations Historically dependent on China for defense purchases, Bangladesh has been shifting towards a more diversified acquisition strategy as part of its Forces Goal 2030, seeking to modernize its military capabilities. Several European Union countries, including Italy, have shown interest in supplying advanced defense equipment. Notably, Italian defense companies like Leonardo and Fincantieri have engaged with Bangladesh in communications technology and radar systems for the Air Force and expressed interest in naval collaborations to enhance Bangladesh’s shipbuilding capabilities using Italian technology.
Economic Engagement Bangladesh’s economic trajectory has seen significant growth, with projections suggesting it could become the 24th largest economy by 2030. The country’s advancement to middle-income status presents both challenges and opportunities. As part of the European Union, Italy has extended Generalized Scheme of Preferences (GSP) benefits to Bangladesh, allowing duty-free market access. This support is crucial as Bangladesh transitions from Least Developed Country (LDC) status. The Italy-Bangladesh Chamber of Commerce and Industry (IBCCI) plays a pivotal role in fostering economic ties. From 1995 to 2019, Bangladesh’s exports to Italy increased substantially, mainly consisting of textiles, with potential for diversification in agricultural exports. Conversely, Italian exports to Bangladesh have also grown, focusing on machinery, electronics, and vehicles. Investment prospects in Bangladesh’s leather industry and other sectors are being explored by Italian businesses, recognizing the country’s economic zones, political stability, and labor market.
Cultural and People Links The Bangladeshi diaspora in Italy represents a significant cultural bridge between the two countries, with remittances playing a critical role in Bangladesh’s economy. In 2020, Italy was the source of the highest remittance inflow to Bangladesh. Ensuring the rights of migrants and simplifying visa processes remain areas of attention. The promotion of skilled migration is also an aspect to consider for future collaboration.
Expanding Horizons Bangladesh and Italy have opportunities to enhance their partnership through scientific, technological, and knowledge transfer. With Bangladesh leading the Indian Ocean Rim Association (IORA) in 2022-23 and Italy engaging with IORA members, there are prospects for cooperation in the blue economy. Additionally, continued bilateral and multilateral support for the Rohingya refugee crisis is imperative for both nations.
The 50-year relationship between Bangladesh and Italy offers a foundation for deepening strategic and economic ties, with potential benefits for both countries’ growth and sustainable development.
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