Korea-Bangladesh CEPA: Current Negotiation Status
This report analyzes the progress of the Korea-Bangladesh CEPA (Comprehensive Economic Partnership Agreement), the highest-level bilateral economic treaty covering tariff reduction, investment protection, service liberalization, and economic cooperation.
As Bangladesh prepares for LDC graduation in November 2026, both countries formally launched negotiations in 2024, targeting conclusion in 2026–2027. Upon CEPA entry into force, Korean companies will have a stable institutional framework for export, investment, and service expansion. Current bilateral trade stands at $3B+/year (Korean exports $1.5B+, imports $1.5B+), with an additional $500M+/year expected once CEPA takes effect.
Negotiation Status by Domain
| Domain | Korea Position | Bangladesh Position | Convergence Level | Outlook |
|---|---|---|---|---|
| Goods Tariffs | Liberalize 80%+ lines | Protect sensitive items | 70% agreed | Likely conclusion |
| Services | Open ICT and finance | Phased opening | 50% agreed | Further talks needed |
| Investment Protection | ISD/ISDS inclusion | Limited ISDS scope | 60% agreed | Likely conclusion |
| Rules of Origin | 40% value addition | Flexible application | 60% agreed | Under coordination |
| Economic Cooperation | KSP and EDCF | Technology transfer | 80% agreed | Near conclusion |
Comparison with Korea's Existing Trade Agreements
Korea currently operates multiple trade agreements in Asia, including the Korea-ASEAN FTA and Korea-India CEPA. The Korea-Bangladesh CEPA is advancing with broader scope and faster momentum building on these precedents. The Korea-India CEPA (2010) drove a +30% increase in Korean exports to India over 5 years after entry into force, while the Korea-ASEAN FTA (2007) achieved +25% trade growth — both serving as benchmarks for the Bangladesh negotiations.
| Agreement | Entry into Force | Liberalization Rate | Export Growth | Key Benefits |
|---|---|---|---|---|
| Korea-India CEPA | 2010 | 80%+ goods | +30% (5 years) | Machinery, electronics, steel |
| Korea-ASEAN FTA | 2007 | 90%+ goods | +25% (5 years) | Automobiles, electronics, chemicals |
| Korea-Vietnam FTA | 2015 | 92%+ goods | +35% (5 years) | Electronics, machinery, textiles |
| Korea-Bangladesh CEPA | Under negotiation | 80%+ target | +20%+ expected | Textiles, machinery, IT |
Trade Impact Analysis
Before and After CEPA Entry into Force
Korean Company Utilization Strategies
CEPA Utilization Flow
Through Korea-Bangladesh CEPA conclusion, Korean companies can secure a stable institutional environment for entry across all fronts — exports, investment, and services. CEPA entry into force timed with LDC graduation provides Korean companies with the optimal institutional foundation for market expansion.