In a significant move to bolster bilateral trade and investment, Bangladesh and South Korea have signed a Comprehensive Economic Partnership Agreement (CEPA). This agreement will grant preferential tariff treatment to 97 percent of Bangladeshi goods entering the Korean market, including readymade garments, leather goods, and jute products. Bangladesh will also extend preferential market access to 87 percent of South Korean products, such as selected agricultural goods, plastics, and Completely Knocked Down (CKD) items.
Commerce Minister Khandakar Abdul Muktadir described the agreement as a landmark achievement that would create new opportunities for employment generation and accelerate the country's economic growth. He highlighted that the deal would support export diversification and enhance Bangladesh's competitiveness in the global market. "The preferential market access secured for Bangladeshi exports in South Korea is a major milestone for the country," Muktadir said, adding that the agreement would play an important role in expanding bilateral trade.
Referring to the agreement as a milestone for Bangladesh's export sector, Muktadir said the CEPA would play a vital role in supporting the country's post-LDC trade transition while attracting greater foreign direct investment (FDI). He noted that Bangladesh aims to become a $1 trillion economy by 2034, requiring an annual nominal GDP growth rate of around eight percent. "As domestic resources alone will not be sufficient to achieve this target, attracting quality foreign investment is essential," he said, describing South Korea as a model economy with strong technological capabilities and a GDP of around $2 trillion.
South Korean Trade Minister Yeo Han-koo congratulated Bangladesh on its economic progress and praised the country's leadership for concluding the agreement in a short period. He said bilateral economic relations had traditionally centred on the textile sector but were now expanding into broader industrial cooperation and investment. Highlighting Bangladesh's demographic advantage, he said the country's large young workforce makes it an attractive production base for Korean companies.
The CEPA is expected to encourage Korean investment in high-value sectors such as semiconductors, information technology, shipbuilding, ship recycling, and light engineering. Both sides expressed confidence that the agreement would usher in a new chapter in Bangladesh-South Korea economic relations by expanding trade, strengthening investment, and creating new opportunities for sustainable economic growth.
