Bangladesh and South Korea signed a Comprehensive Economic Partnership Agreement (SEPA) on 4 August 2026. This agreement was finalised after nearly a year of five rounds of formal discussions and several meetings.

This timing is particularly significant for Bangladesh because, in November 2026, the country is scheduled to graduate from the list of Least Developed Countries (LDC). Consequently, the nature of Bangladesh's trade relationships will change in the upcoming days.

So far, as an LDC, Bangladesh has received duty-free or preferential access to the markets of developed and some developing countries unilaterally. After LDC graduation, some of these benefits will no longer be available as before. Therefore, Bangladesh must now secure new market advantages through bilateral and regional agreements.

From this perspective, CEPA with South Korea is not just a trade agreement; it could be an essential part of Bangladesh's trade, investment, and economic strategy post-LDC graduation. However, it is important to remember that signing an agreement does not automatically translate into economic benefits. The success of this agreement will ultimately depend on how well-prepared Bangladesh is and how effectively it can leverage the opportunities presented by this agreement.