According to Newsis,

(Sejong = NEWSIS) Reporter Kim Dong-ho – Yeo Han-koo, Minister for Trade at the Ministry of Trade, Industry and Energy, and Khandaker Abdul Muktadir, Minister of Commerce of Bangladesh, held a joint declaration on the 4th in Dhaka, Bangladesh, announcing the agreement in principle on negotiations for the Korea-Bangladesh Comprehensive Economic Partnership Agreement (CEPA).

Since declaring the launch of negotiations in November 2024, the two countries held five official rounds of negotiations and numerous intersessional consultations. Since the beginning of this year, intensive negotiations were conducted on key areas such as market opening for goods and services as well as rules of origin.

After agreeing on the need for a swift conclusion to negotiations during a bilateral trade ministers' meeting on the margins of the 14th World Trade Organization (WTO) Ministerial Conference (MC-14) in March, the two sides maintained negotiation momentum, leading to the agreement in principle following this follow-up ministerial meeting.

The Korea-Bangladesh CEPA marks the second CEPA South Korea has concluded with a South Asian nation, following India. It is uated as a turning point that will elevate bilateral relations beyond trade into a comprehensive economic cooperation relationship, building on 53 years of diplomatic ties established in 1973.

Regarding the key outcomes of this agreement in principle, the South Korean government summarized them into: securing a base for entering promising South Asian markets, improving market access conditions for K-consumer goods and major export items, and expanding the foundation for infrastructure and industrial cooperation. Both countries also agreed to eliminate tariffs focused on core items in goods market opening.

First, the government emphasized that Bangladesh represents the largest market among new FTA partners. Given its population of approximately 170 million, continuous economic growth, and ongoing trends of urbanization and industrialization, the consumer market is expected to expand over the medium to long term driven by a growing middle class.

The government also noted that market opening will lay the groundwork for domestic companies' export markets and expand bilateral supply chains, while high-value creation in related industries can be achieved based on textile and apparel production bases alongside investment attraction.

Regarding improved market access for K-consumer goods and major export items as well as strengthened business activities, the government expects product market accessibility to improve as tariffs are eliminated on instant noodles (ramyen), processed coffee preparations, seasoned seaweed, and confectionery through this CEPA.

Furthermore, tariff eliminations on diesel oil—South Korea's top export item to Bangladesh—along with complete knocked-down (CKD) automotive key parts and all auto components, as well as non-discriminatory treatment compared to other nations secured for completely built-up (CBU) vehicles, were highlighted as key achievements.

In the Bangladeshi market, where automobile demand is rising alongside income levels, export conditions for Korean enterprises will improve. Moreover, securing tariff eliminations on items not opened in Bangladesh's other FTAs, such as lube base oil and washing machines, is expected to enhance export competitiveness for domestic firms.

In addition, the government assessed that flexible rules of origin were established for major domestic export items including petrochemicals, steel, electrical and electronic equipment, and machinery, alongside consumer goods like K-food and K-beauty. Korean enterprises are expected to benefit from CEPA preferential tariffs even if they use some non-originating materials or parts during the manufacturing process.

Conversely, for seasoned seaweed—a promising domestic export item—regulations dictate that key raw materials must be originating within the region, establishing a virtuous cycle linking domestic production with exports. Concurrently, strict standards requiring originating raw materials were introduced across fresh agricultural, livestock, and fishery products, reflecting the sensitivity of domestic industries.

Alongside goods market opening, the government announced it secured a foundation for market entry across more than 90 service sectors where Korean enterprise expansion is promising, including K-content, e-learning, healthcare, telecommunications, construction, and distribution.

Through this, opportunities for domestic firms are expected to expand in content, education, healthcare, and infrastructure-related service sectors, where demand is projected to rise in tandem with Bangladesh's economic growth and urbanization.

Regarding the expansion of infrastructure and industrial cooperation, the government reported that tariffs on steel—a primary domestic export category—will be phased out, while tariffs on heavy construction equipment and machinery for agriculture and textiles will be eliminated immediately.

Additionally, a market entry foundation was secured in infrastructure-related service sectors such as construction and engineering. Consequently, in the Bangladeshi market—where large-scale infrastructure developments in roads, railways, ports, and power generation are expected to continue—exports of infrastructure and industry-related goods like steel and heavy construction equipment will expand, while conditions for domestic firms participating in design, construction, and engineering projects will improve.

Both sides also incorporated a broad range of cooperation areas into the CEPA extending beyond trade in goods, including infrastructure, industry, textiles, halal, digital transformation, energy, resources, supply chains, and the clean economy. Through this framework, the plan connects Bangladesh's infrastructure expansion and industrial upgrading demands with the competitiveness of Korean firms, extending bilateral cooperation across diverse fields.

Yeo Han-koo, Minister for Trade, stated, "The Korea-Bangladesh CEPA will connect a promising market of 170 million people with our enterprises and serve as an institutional platform to expand bilateral ties beyond trade in goods into comprehensive economic cooperation across infrastructure and industry." He added, "We will thoroughly carry out follow-up procedures so that this CEPA settles as an economic cooperation platform where both nations grow together."

Meanwhile, the Ministry of Trade, Industry and Energy plans to swiftly finalize consultations on remaining technical details, proceed with follow-up procedures necessary for formal signing and entry into force, and prepare industry briefing sessions alongside user guides to explain major contents and utilization strategies of the agreement.

◎ NEWSIS, oj1001@newsis.com



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Source Text

Source: Newsis (August 04, 2026)

** This article was translated from Korean.