Dhaka:Bangladesh and Malaysia have commenced formal negotiations on establishing a free trade agreement (FTA) aimed at enhancing bilateral trade and investment, with a target to finalize the agreement by 2027. The initial discussions began on Tuesday in Dhaka at a local hotel, where both parties signed the Terms of Reference (ToR) outlining the framework and scope for the negotiations.
According to United News of Bangladesh, the first round of talks, which is scheduled to last three days, marks the start of a series of negotiations. Both sides are committed to concluding a modern, balanced, and mutually beneficial deal. The Commerce Secretary of Bangladesh, Sharaf Uddin Ahmed Choudhury, emphasized the historical and cultural ties between the two countries and noted the significant untapped potential for investment and trade diversification.
The negotiations come after discussions between Bangladesh's Prime Minister Tarique Rahman and Malaysian Prime Minister Anwar Ibrahim during Rahman's visit to Malaysia in June. The FTA is viewed as crucial for Bangladesh as it transitions from the least developed country (LDC) category and seeks to maintain its competitiveness in global markets. Opportunities for collaboration in sectors such as the halal industry, semiconductor skills development, digital trade, logistics, and special economic zones were highlighted.
Rashidi Said, Malaysia's chief negotiator, described the FTA as a strategic initiative beyond mere tariff reductions, aiming to foster a long-term, balanced economic partnership. He noted that bilateral trade reached approximately $2.84 billion in 2025 and expressed optimism that the agreement would facilitate further trade expansion, industrialization, and investment.
The negotiations will focus on critical issues such as trade in goods and services, rules of origin, and customs procedures. Both parties are committed to achieving a balanced and effective agreement through mutual understanding and flexibility. The discussions will continue until October 29, with the upcoming visit of the Malaysian Prime Minister expected to further energize the process.