Bangladesh wins preferential access to South Korean market
Landmark trade deal opens South Korean market to most Bangladeshi exports while encouraging new investment and industrial growth
DHAKA, Bangladesh (MNTV) — Bangladesh has secured preferential tariff access for nearly all of its exports to South Korea under a landmark bilateral trade agreement, giving the South Asian nation a significant boost as it prepares to lose the special trade benefits available to the world’s least developed countries.
The Comprehensive Economic Partnership Agreement (CEPA), signed Tuesday, will allow 97% of Bangladeshi products to enter the South Korean market under preferential tariff treatment, while Bangladesh will reduce tariffs on 87% of South Korean goods, according to the country’s Commerce Ministry.
The agreement is expected to strengthen Bangladesh’s export competitiveness in one of Asia’s largest economies, expand foreign investment and help cushion the impact of the country’s graduation from the United Nations’ Least Developed Country (LDC) category, after which several existing trade preferences are expected to expire.
Ready-made garments, leather goods and jute products—three of Bangladesh’s largest export industries—are expected to benefit from easier access to the South Korean market.
Officials also said the agreement is designed to encourage export diversification by creating new opportunities for Bangladeshi manufacturers beyond the country’s traditional textile sector.
The deal is also expected to deepen South Korean investment in Bangladesh’s industrial sector. Officials said Seoul has expressed interest in expanding investments in higher-value industries.
The industries include semiconductors, information technology, shipbuilding, ship recycling and light engineering, sectors Bangladesh hopes will accelerate its transition toward a more technology-driven manufacturing economy.
Commerce Minister Khandakar Abdul Muktadir described the agreement as a major step toward attracting long-term foreign investment and supporting Bangladesh’s ambition of becoming a $1 trillion economy by 2034.
He said stronger economic ties with South Korea would help generate employment while reducing the country’s dependence on a narrow range of export products.
South Korean Trade Minister Yeo Han-koo said economic cooperation between the two countries is moving beyond the textile industry toward broader manufacturing and industrial partnerships.
He said Bangladesh’s large young workforce makes it an attractive production base for Korean companies seeking to serve both domestic and international markets.
Bangladesh also said the agreement was concluded unusually quickly, with negotiations completed in about six months—far faster than many bilateral trade agreements, which often take years to finalize.
Officials said the interests of domestic industries were protected during the negotiations and that the full agreement will be released publicly.
The CEPA marks one of Bangladesh’s most significant trade agreements in recent years, positioning the country to preserve export momentum, attract higher-quality foreign investment and strengthen economic ties with one of Asia’s largest industrial economies as it enters the post-LDC era.
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