Dhaka: Commerce Adviser Sk. Bashir Uddin has stated that the interim government is employing its full capacity and taking all necessary measures to ensure there is no shortfall in trade initiatives as Bangladesh moves towards LDC graduation. “I can say that through utilizing our full capacity, we’re taking all necessary measures so that there is no lacking in trade initiatives and capacity including in our Smooth Transition Strategy (STS). We’re working keeping ahead all related aspects on the whole,” he said.
According to Bangladesh Sangbad Sangstha, Bashir made these remarks during an interview with the national news agency BSS, discussing the country’s efforts to sign various trade deals such as Economic Partnership Agreements (EPAs), Free Trade Agreements (FTAs), and Preferential Trade Agreements (PTAs) in light of Bangladesh’s scheduled LDC graduation in 2026. The Commerce Adviser emphasized the relentless efforts by the Ministry of Commerce’s FTA Wing, WTO Wing, and Export Wing, which work in unison. He mentioned engaging with stakeholders, economists, and think tanks, and having discussions with trade advisers in Korea and Japan.
Bashir acknowledged the complexities involved in negotiating deals like FTAs and PTAs due to bilateral interests. He expressed concern over the time lost in the past five years, which hindered necessary preparations and contributed to an economic crisis. The interim government is now working diligently to address these challenges, holding meetings with stakeholders to consider the implications of trade liberalization on local investments.
The Commerce Adviser highlighted the impending loss of preferential trade benefits following Bangladesh’s LDC graduation in November 2026. Despite receiving a five-year transition period, the time was not effectively utilized. Citing the PTA between Bangladesh and Bhutan, signed in December 2020 and effective from July 2022, Bashir criticized its lack of tangible impact, stating that the agreement was largely symbolic.
Upon assuming office, the interim government has prioritized managing PTAs and FTAs in the international arena. Bashir noted that Bangladesh’s annual trade volume stands at over $150 billion, with exports exceeding $50 billion and imports ranging from $70 billion to $90 billion. The government aims to promote liberalized trade to support exports and secure competitive import prices, recognizing the necessity of imports.
Bashir stressed the importance of streamlining tariff structures, customs duties, and facilitating investments to foster employment opportunities through local and foreign investments. The government is focused on creating an investment-friendly environment, addressing issues related to FTA, PTA, EPA, and CEPA, with a comprehensive understanding of economic characteristics and global trade trends.
Officials, economists, and business leaders have noted the lack of significant progress in negotiating preferential trade deals with a dozen countries, despite the political changeover in August last year. While negotiations with Japan and South Korea have advanced, talks with other countries, including India, Thailand, Malaysia, Indonesia, China, and Turkey, have yet to gain momentum.
The commerce ministry is striving to negotiate bilateral trade agreements to ensure a smooth transition and maintain market benefits post-graduation. Bangladesh currently benefits from the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA).