Dhaka, Seoul sign Cepa; 97% of Bangladeshi, 87% of S Korean goods to get preferential tariff access
Commerce Minister Khandakar Abdul Muktadir describes the deal as a major milestone in Bangladesh's trade diplomacy.
Bangladesh and South Korea today (4 August) signed a comprehensive economic partnership agreement (Cepa), under which 97% of Bangladeshi products will receive preferential tariff treatment in the South Korean market, while 87% of South Korean products exported to Bangladesh will enjoy similar benefits.
Speaking at a press briefing after the conclusion of the Cepa negotiations, Commerce Minister Khandakar Abdul Muktadir described the deal as a major milestone in Bangladesh's trade diplomacy.
It is Bangladesh's first comprehensive free trade deal under the current government, he added.
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"We concluded a trade agreement with one of the world's largest economies in a very short time. This is our first comprehensive free trade agreement within five months of taking office," he said.
Under the agreement, Bangladeshi exports, including readymade garments, leather and jute products, will receive preferential tariff treatment in South Korea.
Meanwhile, 87% of South Korean exports, including agricultural products, plastics and spare parts, will enjoy similar access to Bangladesh.
The minister said South Korea, with a nearly $2 trillion economy, will become a major trade partner for Bangladesh.
"We want Bangladesh to become a $1 trillion economy by 2034. To achieve that, we need 8% economic growth, which requires more foreign investment. Agreements like this will help attract it," Muktadir said.
South Korean Trade Minister Yeo Han-koo said the two countries have built economic ties over five decades, starting with the textile sector.
He stressed the need to diversify trade beyond traditional products.
Yeo expressed hope that Bangladesh's new government would further strengthen the economy and said South Korea is keen to expand cooperation in technology, supply chains and investment.
Bangladesh's Ministry of Commerce said bilateral trade has grown steadily in recent years, though it remains relatively modest.
According to the ministry, bilateral trade stands at about $1.39 billion, with Bangladesh exporting $491.73 million worth of goods and importing $902.9 million from South Korea, leaving a trade deficit of around $411 million.
Bangladesh mainly exports garments, home textiles, leather goods, footwear, pharmaceuticals, jute products, frozen food and ceramics, while South Korea exports iron and steel, machinery, electrical goods, plastics, chemicals and paper products.
