Bangladesh and South Korea formally declared the conclusion of negotiations on Comprehensive Economic Partnership Agreement (CEPA) under which 8,428 Bangladeshi products are getting duty-free access to the Korean market.
Both sides hope the deal marks a major step towards deepening bilateral trade-and investment ties.
The conclusion of the negotiations was announced Tuesday through a joint declaration by the commerce ministers of the two countries at the Ministry of Commerce in Dhaka.
The agreement will come into force after both countries complete their respective legal-and institutional-approval procedures.
Under the agreement, Bangladesh will enjoy duty-free access for 8,428 products to the South Korean market from the first day of its implementation. In return, South Korea will receive similar market access for 1,054 products to Bangladesh.
According to the Ministry of Commerce, nearly 97 per cent of Bangladesh’s goods and services will receive preferential market access to the Republic of Korea, while about 87 per cent of South Korean goods will enjoy similar preferences in the Bangladesh.
The joint declaration was made by Commerce Minister Khandaker Abdul Muqtadir and South Korean Trade Minister Han-Koo Yeo. The ceremony was attended by Commerce Secretary Md Ataur Rahman Khan, Bangladesh’s Chief Negotiator and Additional Secretary (FTA) Ayesha Akter, South Korea’s Chief Negotiator Park Geun-oh, Deputy Chief Negotiator and Joint Secretary (FTA) Md Firoz Uddin Ahmed, and other senior officials from both countries.
Speaking at the event, Mr Muqtadir said, “The government completed negotiations on a high-standard trade agreement with one of the world’s largest economies within a short period.”
He hopes the agreement would enhance the competitiveness of Bangladesh’s key export items-including readymade garments, leather and leather products, jute and jute products, footwear, pharmaceuticals and home textiles-on the South Korean market.
He said the government was working towards building a US$1.0-trillion economy by 2034, and the CEPA would play an important role in expanding exports, attracting foreign investment and sustaining higher economic growth.
Mr Han-Koo Yeo said the economic relationship between the two countries spanned 56 years and had so far been centred mainly on the textile sector. The time has come to “expand cooperation into new areas such as technology, supply chains, industrial collaboration and investment.”
He expressed the hope that the agreement would encourage greater South Korean investment in Bangladesh.
Beyond merchandise trade, the two countries have also made significant commitments on trade in services. Bangladesh will open 95 services sub-sectors for South Korea, while South Korea will provide market access in 111 services sub-sectors across the four modes of supply for Bangladesh.
The government expects these commitments to facilitate technology transfer, promote the mobility of skilled professionals and strengthen investment cooperation.
The Ministry of Commerce said negotiations began in Seoul in August 2025. Five rounds of talks were held over the past year to resolve outstanding issues before the negotiations were concluded.
Current bilateral trade between Bangladesh and South Korea stands at around US$1.39 billion. Bangladesh exports goods worth about US$492 million to South Korea and imports around US$903 million, resulting in a trade deficit of about US$411 million.
Bangladesh’s major exports to South Korea include readymade garments, home textiles, leather and leather products, footwear, pharmaceuticals, jute and jute products, frozen foods and ceramic products. Imports mainly comprise industrial machinery, iron and steel, electrical equipment, plastics, chemicals and paper products.
According to the Ministry of Commerce, the CEPA is expected to create new opportunities not only for export but also for industrialisation, foreign direct investment, technology transfer, and employment generation.
The agreement is also expected to serve as strategic milestone in helping Bangladesh maintain its global-trade competitiveness after its graduation from the least-developed country (LDC) status.
