Bangladesh Pursues Trade Deals Ahead of LDC Graduation
Bangladesh: Bangladesh is pursuing free trade agreements (FTAs) and comprehensive economic partnership agreements (CEPAs) with 10 countries and economic blocs ahead of its scheduled graduation from Least Developed Country (LDC) status on 24 November 2026. The government has completed 38 feasibility studies and is negotiating with markets including the European Union, Singapore, Malaysia, New Zealand, Türkiye, Nepal, Canada and Mauritius, alongside CEPA negotiations with South Korea and the United Arab Emirates. Bangladesh signed an Economic Partnership Agreement with Japan in February 2026, which is awaiting ratification. Negotiations with South Korea have been completed, subject to cabinet approval, while initial discussions with the EU and the first round of FTA talk with Malaysia are also planned. The country is seeking membership of the Regional Comprehensive Economic Partnership (RCEP) and has requested a three-year extension to its LDC graduation timeline.
The trade negotiations are intended to maintain Bangladesh’s export competitiveness as preferential tariff access and duty-free benefits are withdrawn following LDC graduation. Access to the US market remains a priority, with exports reaching USD 9.05 billion (approximately EUR 7.77 billion) in FY2026, an increase of 4.09% year on year. However, exporters continue to face uncertainty over tariff arrangements, including the current 19% reciprocal tariff on Bangladeshi goods. Trade analysts have called for the government to prioritise agreements based on their potential benefits, particularly with the EU, while addressing domestic challenges involving logistics, energy security, supply chains, workforce skills and export diversification. Bangladesh’s proposed Trade Negotiating Pool and market-access roadmap are intended to guide these efforts.
Source: The Business Standard
