South Korea has officially announced the commencement of negotiations for the Korea-Bangladesh Economic Partnership Agreement (EPA), marking a significant step towards strengthening economic cooperation with the Southwest Asia region.
Jeong In-kyo, deputy minister for trade negotiations at the Ministry of Trade, Industry and Energy, made the announcement following a meeting with Sheikh Bashir Uddin, Bangladesh’s minister of commerce, on Nov. 28.
The EPA negotiations, a type of free trade agreement (FTA), aim to facilitate trade and eliminate barriers such as tariffs and import quotas between the two countries. The first official negotiation is scheduled for the first half of next year, with both nations eager to achieve swift results.
Bangladesh, the 8th most populous country in the world with a population of 170 million, has recorded an impressive average annual economic growth rate of 6.6% over the past three years. This growth has been driven by sectors such as textiles, garments, and increasingly, electronics and digital industries. The Ministry of Trade, Industry and Energy in South Korea anticipates significant opportunities for cooperation with South Korean companies, particularly in the high value-added medical industry, including functional textiles, which is being promoted locally in Bangladesh.
In addition to the EPA negotiations, the two countries signed the Trade and Investment Promotion Framework (TIPF), which establishes a comprehensive cooperation foundation. Jeong emphasized the importance of this framework, stating, “Through the TIPF signed today, we will establish a basic framework for comprehensive economic cooperation between the two countries and, based on this, pursue EPA negotiations, including market opening.”
He further added, “We hope to diversify the trade items between the two countries, which are currently concentrated in the textile sector, and expand cooperation into industries such as electronics and digital, which Bangladesh is focusing on nurturing.”
Historically, trade between South Korea and Bangladesh has been heavily concentrated in the textile sector, with Bangladesh being a major exporter of garments and textiles to South Korea. However, both countries are now looking to diversify their trade relations to include other sectors such as electronics, digital industries, and high value-added medical industries.