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Korea-Bangladesh EPA Business Survey: FTA Strategy Analysis

Overview of the Korea-Bangladesh EPA Business Survey

This article reviews the findings of a business survey conducted to support a Korea-Bangladesh EPA (Economic Partnership Agreement). It summarizes how Korean exporters assess the need for an EPA, which agenda items they prioritize, what benefits they expect, and what implications the results carry for a future Korea-Bangladesh FTA strategy. The survey was conducted by KOTRA with 300 Korean exporting companies.

300 firms
Survey Base
Korean exporters
78%
Need for EPA
answered necessary
Tariff cuts
Top Priority
most expected benefit
$2.5B+
BD Trade
bilateral trade
$1.8B+
Korean Exports
exports to Bangladesh
2027
Target Timing
expected conclusion

Key Survey Findings

Of the 300 Korean companies surveyed, 78% said a Korea-Bangladesh EPA is necessary. The main expected gains were tariff reduction, investment protection, stronger intellectual property safeguards, and greater access to the services market. Respondents also highlighted Bangladesh's relatively low technology base and infrastructure constraints as key concerns.

Expected Benefits of an EPA (Corporate Responses)
Expected BenefitResponse RateCurrent BarrierExpected Improvement
Tariff reduction85%Average 15-25%Below 5%
Investment protection72%Investment uncertaintyStronger legal assurance
Intellectual property65%Losses from counterfeitsImproved protection
Services liberalization58%Restrictions on foreign playersEasier market entry
Customs simplification80%Delays and added costsImproved procedures

Industry-Level Interest

01
Textiles and Garments (90% interest)
Companies expect stronger exports of Korean textile materials and intermediate goods to Bangladesh. Supply-chain integration with Bangladesh's RMG industry is central, and cumulation rules could also improve access to EU and U.S. markets.
02
Machinery and Equipment (82% interest)
Firms expect tariff cuts on industrial machinery, construction equipment, and power-generation systems. If current tariffs of roughly 15-25% fall below 5%, price competitiveness would improve materially.
03
ICT and Electronics (75% interest)
An EPA is expected to support Korean exports of ICT equipment and electronic components while also easing entry into Bangladesh's digital services market.
04
Automotive and Parts (70% interest)
For Korean automotive parts exporters and local assembly investors, investment protection and tariff reduction are seen as the key EPA deliverables.

Implications for FTA Strategy

What Korean Firms Expect
TariffsSignificant reduction
InvestmentStronger protection
CustomsSimplification
ServicesMarket opening
What Bangladesh Expects
InvestmentMore Korean FDI
TechnologyTechnology transfer
EmploymentJob creation
ExportsAccess to Korean market
Collect Business Views
Survey 300 firms and conduct industry FGIs
Report to Government
Submit findings to MOTIE and MOFA and reflect them in negotiation agendas
Launch EPA Talks
Begin formal Korea-Bangladesh EPA negotiations
Conclude and Implement
Target conclusion in 2027 and confirm tariff-cut schedules
Tariff Response 119 FAQ Part 5Q&A on government support programs
EIPP Mirsharai New City PresentationSmart-city master plan for the economic zone
EPAFTABangladeshbusiness surveytrade agreement
Korea-Bangladesh EPA Business Survey: FTA Strategy Analysis | Dhaka Trade Portal