Bangladesh, Malaysia target 2027 to finalise FTA after first round of talks
Bangladesh and Malaysia have agreed to hold the second round of negotiations on a proposed free trade agreement (FTA) in January 2027, aiming to finalise the deal by the end of next year following significant progress in the first round of talks as per reports on UNB and BERNAMA.
The three-day negotiations, which began on October 27, concluded at the Pan Pacific Sonargaon Hotel in Dhaka on Thursday, according to Bangladesh’s Ministry of Commerce.
The talks focused on expanding bilateral trade, boosting investment and opening new avenues for cooperation in technology and the digital economy.
Thirteen working groups from the two countries reviewed draft texts and structural issues across various chapters of the proposed agreement, including trade in goods and services, investment, digital trade, customs procedures, rules of origin, intellectual property and measures relating to food safety and technical standards.
The Malaysian delegation was led by Rashidi Said, a senior official of Malaysia’s Ministry of Investment, Trade and Industry, while Khadiza Nazneen, additional secretary at Bangladesh’s Commerce Ministry, led the Bangladeshi negotiating team.
Speaking at the closing session, Nazneen said the proposed FTA could elevate the existing friendly relations between the two countries to a new level of economic cooperation.
She highlighted Malaysia’s progress in electronics, semiconductors and digital technology, saying the agreement could create opportunities for technology transfer, investment and industrial collaboration once it comes into effect.
Both sides expressed their commitment to reaching an effective, mutually beneficial agreement within the agreed timeframe while balancing their respective economic interests.
The Commerce Ministry said the proposed deal carries particular significance for Bangladesh as the country prepares to graduate from the least developed country (LDC) category. New trade partnerships will be important for maintaining competitiveness in global markets, diversifying export destinations and attracting foreign investment.
An effective FTA with Malaysia, a key economy in the Association of Southeast Asian Nations (ASEAN), could improve market access for Bangladeshi goods and services, strengthen technological capacity and help local industries integrate into regional supply chains, the ministry said.
However, the actual benefits will depend on the final terms of the agreement, including the extent of tariff concessions, safeguards for domestic industries and the implementation framework.
The two countries are expected to use the next round of negotiations in January to further develop the proposed agreement and move closer to finalising a deal by the end of 2027.