BD needs to expedite FTA drive to address post-LDC challenges

Bangladesh needs to speed up its efforts to secure both bilateral and multilateral free trade agreements (FTAs) to maintain its economic growth after graduating from least-developed country (LDC) status, said South Korean Ambassador to Dhaka Park Young-sik.
According to the ambassador, FTA negotiations are lengthy processes and time is running out for Bangladesh.
Ambassador Park explained the urgency for signing an Economic Partnership Agreement (EPA) with Korea. In Korea, he said, initiating FTAs requires internal procedures, including approval by the national assembly.
"The Korean commerce ministry is also busy with numerous FTA negotiations with other countries or regions," the envoy said during a briefing for members of the Diplomatic Correspondents Association (DCAB) on Sunday evening.
"Therefore, I believe this is a good time and perhaps the last chance to begin negotiations for a bilateral EPA."
Mr Park argued that an EPA would help Bangladesh reduce the trade imbalance between Dhaka and Seoul.
While bilateral trade surpassed $3 billion last year, it heavily favours Korea. Bangladesh's exports to Korea only amounted to $624 million in 2023.
The envoy made it clear that Korea, unlike India, China or the US, does not have strategic interests in this deal. "This means both countries could develop their bilateral relations further in a mutually beneficial way through signing the EPA," he added.
Although Bangladesh's exports to Korea increased to $624 million in 2023, there is still vast growth potential, according to the ambassador.
Korea has provided duty- and quota-free access for 95 per cent of Bangladeshi products under the Asia Pacific Trade Agreement since 2008. However, Bangladesh will lose this benefit for many items after graduation from the least-developed country club.
He said Bangladesh lags behind China, Vietnam and Indonesia in exporting ready-made garments (RMG) to Korea. This is because these countries have bilateral and multilateral FTAs with Korea, giving them a competitive advantage in the Korean RMG market.
An EPA between Korea and Bangladesh could provide a boost to Bangladesh's share of Korea's RMG imports, according to Ambassador Park.
The envoy identified footwear and leather, jute, ICT, pharmaceuticals, shipbuilding and breaking, the blue economy and deep-sea fishing, agriculture and agricultural machinery, and greenhouse gas and carbon trading schemes as potential sectors for cooperation within the EPA framework.
He mentioned that discussions on an EPA between Korea and Bangladesh have been ongoing since early 2023, but there has been little concrete progress.
"Earlier this year, the Korean Embassy presented the potential benefits of an EPA to Korea's Ministry of Trade, Industry and Energy (MOTIE)," Ambassador Park said. "MOTIE responded positively to the idea of real discussions on an EPA with Bangladesh."
He added the Korean trade minister and Bangladesh's state minister for commerce also briefly discussed the issue during their meeting at the recent 13th WTO Ministerial Conference.

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