Background of the 1st Korea-Bangladesh CEPA Negotiation
The Comprehensive Economic Partnership Agreement (CEPA) between Korea and Bangladesh entered its first official negotiating round in August 2025. As Bangladesh is scheduled to graduate from LDC status in 2026, Korea's preferential tariff treatment under the GSP is expected to be phased out by 2029, making tariff concessions under CEPA the central issue in bilateral trade. Bilateral trade is currently around $2.3B a year, and CEPA conclusion is expected to lift this to about $3.5B.
Key Agenda of the 1st Round
The first round is organized across four pillars: goods, services, investment, and rules. The goods pillar discusses tariff concession scope; the services pillar focuses on market opening in construction and IT; the investment pillar covers investor protection and dispute resolution; and the rules pillar addresses origin rules, SPS, and TBT measures.
| Pillar | Korea Focus | Bangladesh Focus | Key Issue |
|---|---|---|---|
| Goods | Tariff reduction in autos, electronics, and steel | Bangladesh market access for garments and fisheries | Exclusion scope for sensitive items |
| Services | Opening of construction, IT, and finance markets | Expanded labor mobility | Mode 4 (movement of natural persons) |
| Investment | ISDS provisions and investment protection | Technology transfer requirements | Scope of forced technology transfer |
| Rules | Easing of rules of origin | Managing technical barriers | Cumulative origin approach for garments |
Korean Industry Impact Analysis
If CEPA is concluded, tariffs for major Korean export categories will fall, strengthening price competitiveness. Major reductions are expected in autos (currently 60%), electronics (25%), steel (15%), and chemicals (10-20%).
Negotiation Timeline and Outlook
The first-round talks started in August 2025, with rounds 2 to 5 expected in 2025-2026 and a signing target in 2027, followed by entry into force in 2028. Because the LDC phase-out period ends in 2029, both sides agree that speed is required to prevent a trade-preference gap afterward.