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Bangladesh and South Korea on Tuesday signed a Comprehensive Economic Partnership Agreement (CEPA), under which 97 percent of Bangladeshi products entering the Korean market will receive preferential tariff treatment, marking a major step toward expanding bilateral trade and investment.
Under the agreement, Bangladesh will also grant preferential market access to 87 percent of South Korean products, including selected agricultural goods, plastics and Completely Knocked Down (CKD) items.
Commerce Minister Khandakar Abdul Muktadir announced the details after the signing ceremony at the Secretariat, describing the agreement as a landmark achievement that would boost exports, create jobs and accelerate economic growth.
He said the CEPA would provide easier access for Bangladeshi exports, including ready-made garments, leather goods and jute products, to the South Korean market while supporting export diversification and strengthening the country’s global competitiveness.
“The preferential market access secured for Bangladeshi exports in South Korea is a major milestone,” the minister said, adding that the agreement would play a key role in expanding bilateral trade.
Muktadir said the deal would also support Bangladesh’s transition after graduation from the least developed country (LDC) category and help attract greater foreign direct investment (FDI).
He said Bangladesh aims to become a $1 trillion economy by 2034, requiring annual nominal GDP growth of around 8 percent, and stressed that quality foreign investment would be essential to achieve that target.
Describing South Korea as a technologically advanced economy with a GDP of around $2 trillion, he said the agreement would encourage Korean investment in sectors such as semiconductors, information technology, shipbuilding, ship recycling and light engineering.
South Korean Trade Minister Yeo Han-koo congratulated Bangladesh on its economic progress and praised both countries for concluding the agreement within a relatively short period.
He said bilateral economic cooperation, once centred mainly on the textile sector, is now expanding into manufacturing, industrial collaboration and investment.
Highlighting Bangladesh’s young workforce, Yeo said the country offers an attractive production base for Korean companies seeking to serve both the Korean market and global export destinations.
Responding to questions from reporters, Muktadir said the negotiations were completed efficiently rather than hastily.
While similar trade agreements often take 10 to 20 years to conclude, Bangladesh and South Korea finalised the CEPA within six months through sustained negotiations, he said.
The minister added that the interests of domestic industries had been protected throughout the negotiation process and that the agreement would be made public for detailed review.
Both sides expressed confidence that the CEPA would open a new chapter in Bangladesh-South Korea economic relations by expanding trade, increasing investment and supporting long-term sustainable growth.