Last Updated on March 16, 2026 11:17 pm by BIZNAMA NEWS
Zakir Hossain from Dhaka
Bangladesh is considering joining new international trade alliances to address challenges arising from global tensions, including the Russia–Ukraine War and instability in the Middle East, as well as its upcoming graduation from least developed country (LDC) status.
Bangladesh is set to graduate from the LDC category this year, which will end the duty-free export facilities it currently enjoys in developed markets and pose a challenge to its export sector.
Experts have suggested that Dhaka join the Regional Comprehensive Economic Partnership (RCEP) and pursue a Preferential Trade Agreement with South Korea. Sources said three agencies under the Prime Minister’s Office, the Bangladesh Investment Development Authority, the Bangladesh Economic Zones Authority and the Public Private Partnership Authority Bangladesh, presented these proposals at a meeting with the commerce ministry.
They proposed concluding a PTA with South Korea within 180 days, initiating negotiations for a Free Trade Agreement with the European Union this year and finalising it by 2028, and deciding within this year on joining RCEP.
Officials said South Korea is the fifth-largest investor in Bangladesh and among the top ten sources of foreign direct investment. They also suggested sending an expression of interest to the EU to start FTA discussions.
RCEP member countries account for about 30% of global GDP, and joining the bloc could help Bangladesh integrate into global value chains and become a regional production hub. Competitors such as India and Vietnam already have FTAs with the EU.
The EU remains Bangladesh’s largest export destination, with the country’s share of the EU ready-made garments market reaching 21.57% in 2025. Bangladesh currently enjoys duty-free access under the Everything But Arms scheme, but the benefit will end after LDC graduation.
China, Bangladesh’s largest trading partner, is already part of RCEP along with the 10-member Association of Southeast Asian Nations, Japan, South Korea, Australia and New Zealand. Competitors including Vietnam, Myanmar and Cambodia are already members.
Experts say joining such alliances could strengthen Bangladesh’s economic capacity while promoting export diversification and trade liberalisation.
