Bangladesh and South Korea are set to begin formal negotiations for an Economic Partnership Agreement (EPA) this July, to sign the deal by the end of 2025. Commerce Secretary Mahbubur Rahman confirmed the timeline at a seminar on bilateral investment held at Amari Dhaka.

The proposed EPA will cover duty rationalisation, investment, regional value addition, and service trade, marking a significant step toward deepening bilateral trade and economic integration.

Creating New Avenues for Trade and Investment

Co-hosted by the South Korean Embassy and FICCI, the seminar brought together policymakers, diplomats, and business leaders. Discussions highlighted Bangladesh’s strategic location, young population, and market expansion potential through bringing furtherpolicy clarity and faster customs processes. Addressing the discussions, Commerce Secretary Rahman also hinted at possible import policy reforms, including reducing smartphone import duties to curb grey market activity.

KIDO, a major South Korean investor in Bangladesh, announced plans to expand its workforce from 4,200 to 10,000 in the Adamjee EPZ, citing Bangladesh’s cost competitiveness over Vietnam.

Tariff Reform and Regional Competitiveness

Experts stressed the importance of tariff rationalisation and cited Vietnam as a model—its aggressive FTA strategy has helped drive exports to nearly its GDP value. They noted that Bangladesh’s reliance on high protective tariffs needs urgent review to remain globally competitive.

In 2023, bilateral trade stood at $2.27 billion, with Bangladesh importing $1.62 billion of goods from South Korea and exporting $649 million. The prospective EPA is expected to significantly boost this growth.