The year 2024 marked an evolving chapter in the diplomatic, economic, and strategic partnership between Bangladesh and the United Kingdom (UK). Against the backdrop of global economic shifts, political transitions, and climate challenges, the two nations continued to engage in multifaceted cooperation spanning trade, governance, climate change, migration, and education.
As Bangladesh nears its graduation from Least Developed Country (LDC) status in 2026, its relationship with the UK has seen recalibrations, with a greater focus on trade facilitation, investment, and technical collaboration over traditional aid mechanisms. At the same time, the UK’s engagement in Bangladesh’s political transition and continued support for humanitarian causes, such as the Rohingya crisis, reinforced its long-standing commitment to fostering stability and development in the region.
This article presents an in-depth exploration of the key achievements, trends, and future prospects that defined Bangladesh-UK relations in 2024.
Achievements in 2024
Despite global economic turbulence and political changes in Bangladesh, the bilateral relationship between Dhaka and London continued to flourish across multiple sectors. The following were some of the notable achievements-
- Trade and Economic Cooperation
The UK remained one of Bangladesh’s most significant trading partners in 2024, with bilateral trade totaling £3.3 billion by Q2 2024. Although this represented a 21% decline from the previous year due to Brexit-induced tariff complexities and global supply chain disruptions, the UK maintained its position as Bangladesh’s third-largest export destination.
Bangladesh-UK Trade and Investment (2024)
| Category | Key Figures (Q2 2024) | Change from Q2 2023 |
| Total Trade Volume | £3.3 billion | ↓ 21% (£883 million) |
| Total UK Exports | £655 million | ↓ 0.2% (£1 million) |
| – Goods Exports | £374 million (57.1% of total exports) | ↓ 6.5% (£26 million) |
| – Services Exports | £281 million (42.9% of total exports) | ↑ 9.8% (£25 million) |
| Total UK Imports | £2.7 billion | ↓ 24.8% (£882 million) |
| – Goods Imports | £2.3 billion (86.8% of total imports) | ↓ 29.1% (£949 million) |
| – Services Imports | £353 million (13.2% of total imports) | ↑ 23.4% (£67 million) |
| Trade Balance | Deficit of £2.0 billion | Lower than £2.9 billion |
Top Traded Goods
| Category | Exports to Bangladesh (Q2 2024) | Change (%) | Imports from Bangladesh (Q2 2024) | Change (%) |
| Metal Ores & Scrap | £108.4 million | ↓ 29.7% | Clothing | £2.1 billion |
| Mechanical Power Generators | £74.3 million | ↑ 30.1% | Mechanical Power Generators | £49.8 million |
| Electric Motors | £33.2 million | ↑ 16.3% | Textile Fabrics | £48.3 million |
| Industrial Machinery | £21.2 million | ↓ 11.2% | Fish & Shellfish | £39.3 million |
| Cars | £15.9 million | ↑ 39.4% | Vegetables & Fruits | £17.3 million |
Foreign Direct Investment (FDI)
| Category | FDI Value (2022) | Change from 2021 |
| UK Outward FDI in Bangladesh | Data Not Available | N/A |
| Bangladesh Inward FDI in UK | £1.1 billion | ↑ 2257.8% (£1 billion) |
UK Market Share in Bangladesh (2023)
| Market Share | Percentage | Change from 2022 |
| Total UK Market Share | 1.2% | ↑ 0.1% |
| Goods Market Share | 0.9% | ↑ 0.1% |
| Services Market Share | 2.9% | No Change |
Economic Projections for Bangladesh (2024)
| Metric | Value (2024) | Comparison to 2023 |
| GDP Growth | 5.4% | ↓ from 5.8% |
| Inflation Rate | 9.7% | ↑ from 9.0% |
| Total Investment (% of GDP) | 30.1% | ↓ from 30.9% |
| Population | 172 million | ↑ from 170.3 million |
The trade landscape between Bangladesh and the UK saw key developments, with the ready-made garments (RMG) sector continuing to dominate exports despite rising production costs and supply chain bottlenecks. In response to concerns over over-reliance on RMG, the Bangladeshi government actively promoted diversification efforts, encouraging exports in pharmaceuticals, leather goods, agro-processed products, and electronics. The UK’s Developing Countries Trading Scheme (DCTS) played a crucial role in sustaining duty-free access for Bangladeshi products post-Brexit, helping to mitigate the adverse impact of trade disruptions.
- Economic Cooperation: UK’s Assistance in Banking, Revenue, and Capital Market Reforms
- UK’s Offer to Support Bangladesh’s Economic Reforms
On August 27, 2024, UK High Commissioner Sarah Cooke met with Finance Adviser to the Interim Government Dr. Salehuddin Ahmed to discuss the UK’s willingness to assist Bangladesh in reforming its banking, revenue, and capital market sectors. The UK’s keen interest in Bangladesh’s economic development aligns with its broader strategy of shifting from traditional aid to technical assistance, focusing on structural economic improvements.
Dr. Salehuddin Ahmed welcomed the UK’s proposal, emphasizing that reforms in the financial sector are an immediate priority for Bangladesh. Structural weaknesses in the banking and capital markets have long posed challenges to economic stability. Without urgent reforms, these sectors could hinder Bangladesh’s ability to attract foreign investment, sustain economic growth, and manage the upcoming transition from Least Developed Country (LDC) status in 2026.
- UK’s Continued Investment and Trade Relations
The UK is one of Bangladesh’s largest trading partners, with bilateral trade valued at £3.3 billion by mid-2024. However, trade volumes have seen a slight decline due to logistical inefficiencies, Brexit-related tariff challenges, and shifting global trade dynamics. Despite this, both nations remain committed to enhancing trade and investment relations. HSBC Bangladesh has reported that over 240 UK companies have significant investments in Bangladesh, spanning industries such as textiles, banking, and education.
The UK has historically been a major investor in Bangladesh’s private sector, particularly in garments, energy, and financial services. During the August 2024 meeting, the Finance Adviser emphasized the need for trade diversification, urging British investors to explore opportunities beyond ready-made garments (RMG)—which constitute the bulk of Bangladesh’s exports to the UK. Expanding trade in pharmaceuticals, leather goods, agro-processing, and electronics could open new avenues for economic collaboration.
- Strengthening the Investment Climate in Bangladesh
A key priority for Bangladesh is improving the ease of doing business to attract foreign direct investment (FDI). Dr. Salehuddin Ahmed in a meeting held in Augus 2024 acknowledged that creating a favorable business environment is critical to boosting UK-Bangladesh trade relations. Issues such as regulatory inefficiencies, bureaucratic hurdles, and infrastructure bottlenecks need to be addressed to enhance investor confidence.
The British High Commissioner, on the same gathering, emphasized that UK investors are “responsible investors” and are keen to expand their footprint in Bangladesh. Discussions included ways to build investor confidence, improve regulatory transparency, and ensure long-term economic stability.
- UK’s Assistance in Capacity Building and Policy Reforms
Beyond trade and investment, the UK has shown interest in supporting Bangladesh in developing robust financial regulations and governance mechanisms. This includes reforms in the banking sector to reduce non-performing loans and strengthen oversight, modernization of the revenue system to enhance tax collection and fiscal management, and improvements in capital market regulations to encourage investment and financial inclusion. Additionally, both countries are exploring avenues for collaborative research, policy dialogues, and expert consultations to design effective reform strategies. These initiatives aim to help Bangladesh transition toward a more resilient and diversified economy.
- Diplomatic Engagement and Political Reforms
On November 6, 2024, British High Commissioner to Bangladesh, Sarah Cooke, reaffirmed the UK’s commitment to supporting Bangladesh’s democratic transition during a meeting with Foreign Secretary Ambassador Md Jashim Uddin. The discussion revolved around strengthening Bangladesh-UK relations and fostering cooperation in critical areas such as trade, climate change, migration, maritime security, and the Rohingya crisis.
Bangladesh has been undergoing significant political changes following the political crisis of August 2024, which led to the establishment of an interim government. The UK, as a long-standing ally, has expressed its readiness to support governance reforms, democratic consolidation, and institutional strengthening in Bangladesh. British officials have repeatedly emphasized their interest in fostering transparency, rule of law, and good governance as essential pillars of a stable democracy.
During the meeting, the Foreign Secretary acknowledged the UK’s support for the reform initiatives of the Interim Government, which aims to ensure a smooth and discrimination-free democratic transition. The British envoy, in response, praised Bangladesh’s leadership in addressing both regional and global challenges and assured continued UK support for the country’s long-term development priorities.
- Diaspora Engagement and Education Initiatives
The UK’s role in Bangladesh’s democratic transition is also reflected in its engagement with the Bangladeshi diaspora in the UK, which plays a vital role in shaping bilateral relations. The Foreign Secretary abck in November 2024 highlighted the significance of the Bangladeshi community in the UK, particularly their contributions to strengthening political, economic, and cultural ties between the two nations.
Bangladesh has been advocating for increased UK government scholarships for Bangladeshi students and expedited visa processing for those enrolling in prestigious UK universities. The British High Commissioner assured that these issues would be reviewed to facilitate academic exchanges and human resource development.
- UK’s Role in Regional Stability and Rohingya Crisis
The Rohingya crisis remains a key agenda in Bangladesh-UK relations. The UK, as the pen-holder on Myanmar at the UN Security Council, plays a pivotal role in mobilizing international efforts for the sustainable and dignified repatriation of Rohingya refugees. Bangladesh has consistently urged the UK and the broader international community to apply sustained diplomatic pressure on Myanmar to facilitate the safe return of the Rohingya population.
The UK has already provided substantial humanitarian assistance to support the refugees and host communities in Bangladesh. During the November 2024 meeting, Bangladesh’s Foreign Secretary reiterated the need for continuous UK advocacy at international platforms to ensure the resolution of this protracted humanitarian crisis.
In 2024, the UK pledged an additional £12 million in humanitarian aid to support both the refugees and host communities. This assistance focuses on providing clean water, healthcare, and shelter, offering protection services for vulnerable groups such as women and children, and implementing capacity-building programs to establish sustainable refugee support mechanisms.
- Climate Change Collaboration
Bangladesh and the UK are set to deepen collaboration on climate change and environmental conservation, as discussed during a meeting on 19 August 2024 between Environment Adviser Syeda Rizwana Hasan and British High Commissioner Sarah Cooke. The discussions emphasized capacity building, rainwater harvesting, desalination, and the need to increase climate financing beyond the pledged $100 billion. Rizwana highlighted Bangladesh’s unique climate challenges, including water salinity, the Rohingya crisis, and climate-induced migration, while stressing the urgency of global climate action and greater youth involvement. The UK reaffirmed its commitment to supporting Bangladesh’s environmental initiatives, particularly in conserving the Sundarbans and Hakaluki Haor and transitioning to green energy. Both nations aim to enhance cooperation through capacity building, technology transfer, and policy development, with plans to collaborate closely at the next COP summit. Under its Climate Action for a Resilient Asia (CARA) initiative, the UK continues to fund disaster preparedness and climate adaptation programs, benefiting Bangladesh’s coastal communities. Additional funding has also been directed toward empowering young climate activists and marginalized communities, strengthening grassroots resilience against climate change.
- Education and Capacity Building
In 2024, the British Council played a key role in enhancing Bangladesh’s education sector through initiatives aimed at improving higher education quality and fostering cultural exchange. Capacity-building programs for university leadership and accreditation bodies helped raise academic standards, while expanded scholarships and exchange programs strengthened people-to-people ties between the two nations.
The British Council and the Department of Youth Development (DYD) of Bangladesh have partnered to empower the nation’s youth. On January 4, they signed a Letter of Intent (LoI), marking their shared commitment to equipping young people with the necessary skills to succeed in a globalized world. This collaboration, which will last for three years, is focused on three main objectives.
First, the British Council will provide training to young people in important soft skills such as financial literacy, critical thinking, and communication. This training will help prepare graduates and young trainees for the changing job market and entrepreneurship opportunities.
Second, the partnership will work to amplify the voices of young people across Bangladesh. Through workshops and research, the partnership aims to gather feedback from youth, ensuring their perspectives are included in national youth policies and programs.
Finally, the British Council will contribute to the “Next Generation Bangladesh” research initiative. This project seeks to understand the challenges, aspirations, and potential of young people in Bangladesh, and the findings will guide evidence-based youth development policies.
This collaboration is designed to create lasting change, with a focus on building DYD’s capacity to continue youth development efforts beyond the initial partnership. The signing ceremony was attended by senior leadership from both organizations, emphasizing their collective commitment to investing in the future of Bangladesh’s youth.
Trends in Bangladesh-UK Relations (2024)
| Trend | Key Developments |
| Shift from Aid to Technical Assistance | – Decline in traditional ODA, replaced by technical and policy support. – UK experts assisted in enhancing Bangladesh’s trade policies to navigate post-Brexit complexities. |
| Trade Diversification Beyond RMG | – Increased UK investment in pharmaceuticals and leather sectors. – Strengthened collaboration in agro-processing and electronics to support Bangladesh’s industrial goals. |
| Migration and Mobility Cooperation | – Discussions on curbing unauthorized migration under the UK-Bangladesh Migration Dialogue. – UK explored Talent Partnerships to facilitate skilled worker mobility in tech, healthcare, and engineering. |
| Declining Bilateral Trade Volumes | – 21% decline in overall bilateral trade due to Brexit-related barriers and customs inefficiencies. – 9.8% increase in services trade (finance, IT, consultancy), indicating potential growth areas. |
Future Prospects of Bangladesh-UK Relations
| Strategic Area | Key Opportunities | Specific Actions & Focus Areas |
| 1. Strengthening Trade Partnerships | Exploring Trade Agreements | – Potential Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA) to mitigate LDC graduation and post-Brexit tariffs. |
| Leveraging UK’s DCTS | – Maximizing benefits from the UK’s Developing Countries Trading Scheme to maintain Bangladesh’s competitive edge. | |
| 2. Expanding Climate Collaboration | Renewable Energy Investments | – UK investment in solar, wind, and hydroelectric projects. |
| Regional Climate Resilience Programs | – Joint climate adaptation initiatives across South Asia. | |
| 3. Boosting Education & Research Cooperation | Enhanced Scholarships | – Expansion of Commonwealth & Chevening scholarships to strengthen cultural ties. |
| University Partnerships | – Collaboration in STEM, public policy, and climate science research. | |
| 4. Political Stability & Governance Support | Democratic Strengthening Initiatives | – Supporting governance reforms for inclusive political development. |
| Judicial & Electoral Assistance | – Enhancing electoral institutions and judicial frameworks for stronger democratic processes. | |
| 5. Expanding British Investment in Bangladesh | Development of Economic Zones | – UK investors’ participation in Bangladesh’s 100+ economic zones. |
| Investment Sectors | – Infrastructure, Technology & Innovation, Green Energy & Sustainability. |
Conclusion
The year 2024 marked a period of recalibration for Bangladesh-UK relations. Despite challenges such as declining trade volumes and political uncertainties, both nations made notable progress in democratic support, climate cooperation, and education partnerships. As Bangladesh prepares for its LDC graduation, the UK’s role will increasingly shift toward technical expertise, investment facilitation, and governance support. The potential for stronger trade agreements, renewable energy collaboration, and enhanced educational ties presents a promising outlook for the future.
With shared strategic priorities, Bangladesh and the UK are poised to deepen their partnership in the coming years, reinforcing their historic ties while adapting to evolving global dynamics.