Bangladesh, Malaysia wrap up first round of FTA talks

Bangladesh and Malaysia have concluded the first round of negotiations on a proposed free trade agreement (FTA), with both sides tentatively setting January 2027 for the next round, the Ministry of Commerce said Thursday (29 October).

The three-day talks, which began on October 27, formally ended at the Pan Pacific Sonargaon Hotel in Dhaka, according to a press release issued by the ministry.

The negotiations took place in a "positive atmosphere" and focused on expanding bilateral trade, increasing mutual investment and opening new areas of cooperation in technology and the digital economy, the ministry said.

During the talks, 13 working groups reviewed draft texts and structural issues of the relevant FTA chapters.

The discussions covered trade in goods, trade in services, rules of origin, customs facilitation, digital trade, sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT) and issues concerning small and medium enterprises (SMEs), among others.

Investment and intellectual property were also on the agenda.

Both delegations placed emphasis on identifying each country's positions, potential and areas of cooperation, the ministry said.

Speaking at the closing session, Khadiza Nazneen, additional secretary at the Commerce Ministry and Bangladesh's chief negotiator, said the proposed FTA would create an opportunity to take the existing friendly relations between the two countries to a new economic level.

Citing Malaysia's progress in electronics, semiconductors and digital technology, she said the agreement, once in effect, could open up new possibilities for technology transfer, investment attraction and industrial cooperation.

She thanked Malaysia's chief negotiator, Rashidi Said, and his delegation.

Both sides expressed their resolve to finalise an effective "win-win" agreement within the stipulated timeframe, while maintaining a balance of mutual interests and benefits.

The ministry said the FTA holds particular significance for Bangladesh. After graduation from the least developed country (LDC) category, new trade partnerships will be crucial for sustaining competitiveness in global markets, expanding export destinations and attracting foreign investment.

It expressed hope that an effective FTA with Malaysia, a key ASEAN economy, would widen market access for Bangladeshi goods and services, strengthen industrial technological capacity and create opportunities to join regional supply chains.

However, the ministry cautioned that the actual benefits would depend on the final terms of the agreement, the extent of tariff concessions, the protection of domestic industries and the implementation framework.

Crafting a sustainable and mutually beneficial deal that balances the commercial interests of both countries is therefore seen as vital, it added.

With the conclusion of the first round, the process of drawing up the Bangladesh-Malaysia FTA has moved one step forward, the ministry said, expressing hope that the second round in January would pave the way for shaping the final contours of the agreement.

Source: UNB