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DHAKA: The first round of formal negotiations on the proposed free trade agreement (FTA) between Bangladesh and Malaysia has concluded, with the two countries making progress on trade in goods and services, investment, digital trade, intellectual property and trade facilitation.
Both sides have tentatively targeted January 2027 for the second round of negotiations.
The three-day talks, which began on October 27, concluded on Thursday at the Pan Pacific Sonargaon Hotel in Dhaka. Representatives of the two countries exchanged views on draft chapters and structural issues related to the proposed agreement.
Thirteen working groups reviewed draft chapters covering various aspects of the FTA, including trade in goods and services, rules of origin, tariff and customs procedures, digital trade, sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT) and issues concerning small and medium-sized enterprises.
The discussions focused on identifying the positions of both countries, potential opportunities and areas for mutual cooperation.
At the closing ceremony, Bangladesh’s chief negotiator and Additional Secretary to the Ministry of Commerce, Khadija Nazneen, said the proposed FTA offered an opportunity to take the existing friendly relations between Bangladesh and Malaysia to a new level of economic cooperation.
Highlighting Malaysia’s advances in electronics, semiconductors and digital technology, she said the agreement could open up new opportunities for technology transfer, investment and expanded industrial cooperation.
The Bangladeshi side also thanked Malaysia’s chief negotiator, Dr Rashidi Said, and his delegation. Both sides expressed their commitment to finalising an effective and mutually beneficial agreement while maintaining a balance of interests and benefits.
The next round of negotiations is expected to focus on resolving differences over various chapters and reaching mutually acceptable positions.
The proposed FTA could play an important role in helping Bangladesh maintain its international competitiveness, expand export markets and attract foreign investment after graduating from the least developed country (LDC) category.
An agreement with Malaysia, a key ASEAN economy, could improve market access for Bangladeshi goods and services, strengthen technological capabilities in industry and create opportunities for Bangladesh to participate more extensively in regional supply chains.
However, the actual benefits will depend on the final terms, the scope of tariff concessions, safeguards for domestic industries and the implementation framework. Maintaining a balance between the commercial interests of both countries will therefore be crucial to ensuring a sustainable and mutually beneficial agreement.
The conclusion of the first round marks another step forward in the process of negotiating the Bangladesh-Malaysia FTA, with both sides expected to make further progress when talks resume in January.