Dhaka and Seoul have signed a landmark Comprehensive Economic Partnership Agreement (CEPA) to boost bilateral trade and economic cooperation. Signed on Tuesday at the Ministry of Commerce in Dhaka this is the first CEPA concluded by the new Bangladeshi government achieved within five months of taking office.
Under the deal 97% of Bangladeshi goods and services will receive preferential tariff treatment in the South Korean market. This key access covers major export sectors, including ready-made garments (RMG) leather and jute products. Conversely, 87% of South Korean exports will enjoy preferential tariffs in Bangladesh easing the import of agricultural goods plastics and industrial spare parts.
Commerce Minister Khandaker Abdul Muqtadir described South Korea—a US$2 trillion economy—as a vital strategic partner. He noted that the pact aims to attract crucial Foreign Direct Investment (FDI) to help transform Bangladesh into a US$1 trillion economy by 2034 which requires maintaining an 8% annual growth rate. South Korean Trade Minister Yeo Han-koo highlighted the 56-year economic relationship between the nations expressing South Korea’s keen interest in deepening cooperation in technology and supply chains.
Currently bilateral trade between the two nations is US$1.39 billion with Bangladesh running a trade deficit of about US$411 million (exporting US$491.73 million and importing US$902.90 million). This new agreement is expected to diversify exports, reduce this trade gap, and foster long-term investment.
