Bangladesh secures duty-free access for 8,428 products in South Korea under landmark trade deal

Bangladesh has secured immediate duty-free access for 8,428 products to the South Korean market under a sweeping trade agreement whose negotiations concluded Tuesday, potentially opening one of Asia’s major economies further to Bangladeshi exports as the country prepares for its graduation from least developed country status.

Bangladesh and South Korea formally concluded negotiations on the Comprehensive Economic Partnership Agreement, or CEPA, after a year of talks, the Commerce Ministry said in a statement.

The breakthrough was announced jointly by Bangladesh Commerce Minister Khandaker Abdul Muktadir and South Korean Trade Minister Han-Koo Yeo at the CEPA Negotiation Conclusion Ceremony at the Secretariat in Dhaka.

The agreement has yet to take effect. Both countries must first complete their respective legal processes and secure cabinet approval before the CEPA can formally enter into force.

Once it does, however, 8,428 Bangladeshi products will receive duty-free access to the South Korean market from the first day. Bangladesh, in turn, will grant the same treatment to 1,054 South Korean products.

Overall, 97% of Bangladeshi goods and services will receive preferential access to the South Korean market, compared with 87% of South Korean products entering Bangladesh.

Muktadir said the government had managed to conclude negotiations on what he described as a high-standard trade agreement with one of the world’s largest economies within five months.

He said the deal would strengthen the competitiveness of Bangladeshi ready-made garments, leather and leather goods, jute and jute products, footwear, pharmaceuticals, home textiles and other exports in the South Korean market.

The government is seeking to turn Bangladesh into a $1 trillion economy by 2034, Muktadir said, adding that the CEPA could contribute to that ambition by supporting higher economic growth, expanding exports and attracting greater foreign investment.

Yeo said Bangladesh and South Korea had built an economic relationship spanning 56 years, but that its center of gravity had largely remained in textiles.

The time had now come, he said, to broaden that relationship into technology, supply chains, industrial cooperation and investment. The CEPA, he added, was expected to encourage more South Korean companies to invest in Bangladesh.

The agreement also contains significant commitments on services.

Bangladesh will open 95 services subsectors to South Korea, while South Korea will provide Bangladesh access to 111 subsectors across four modes of services trade.

The two sides expect the opening to strengthen technology transfers, create greater opportunities for skilled workers and deepen investment cooperation.

The agreement followed a year-long negotiating process involving five formal rounds of talks and around 40 online meetings at the chief negotiator level.

The two countries initially finalized the Terms of Reference for the negotiations before establishing a Trade Negotiating Committee and 11 Technical Working Groups comprising officials from relevant ministries and government agencies.

The first formal round was held in Seoul from Aug. 22 to 27, 2025. Under the agreed negotiating schedule, five rounds were subsequently completed — two in Bangladesh and three in South Korea.

Around 40 additional online meetings between the chief negotiators were held to resolve outstanding issues before the talks were formally concluded.

Commerce Secretary Md Ataur Rahman Khan, NDC; Bangladesh’s chief negotiator and Commerce Ministry Additional Secretary (FTA) Ayesha Akter; South Korea’s chief negotiator Park Geun-oh; Deputy Chief Negotiator and Commerce Ministry Joint Secretary (FTA) Md Firoz Uddin Ahmed; and other senior officials from both countries attended Tuesday’s ceremony.

The agreement could significantly reshape a bilateral trading relationship that is currently tilted in South Korea’s favorm said experts concerned.

Two-way trade now stands at about $1.39 billion. Bangladesh exports approximately $491.73 million worth of goods to South Korea while importing around $902.90 million, leaving Dhaka with a trade deficit of roughly $411 million.

Bangladesh’s principal exports to South Korea currently include ready-made garments, home textiles, leather and leather goods, footwear, pharmaceuticals, jute and jute products, frozen foods and ceramics.

Bangladesh, meanwhile, imports industrial machinery, iron and steel, electrical equipment, plastics, chemicals and paper products from South Korea.

Officials expect the CEPA to create opportunities extending beyond merchandise exports, including greater industrialization, foreign investment, technology transfers and employment.

The agreement also carries particular significance as Bangladesh approaches its graduation from least developed country status, after which some of the preferential trade facilities it has traditionally enjoyed will disappear.

The government views the CEPA as a strategic tool for preserving Bangladesh’s competitiveness in global trade after graduation.

Tuesday’s announcement marks the conclusion of negotiations at the negotiator level rather than the formal implementation of the agreement. The Bangladesh-South Korea CEPA will enter into force only after the two countries complete their legal procedures and obtain the necessary cabinet approvals.

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