Overview of Bangladesh's Trade Agreement Framework
Bangladesh leverages its Least Developed Country (LDC) status to benefit from a range of preferential trade schemes. As of 2020, its key multilateral and regional agreements include SAFTA (South Asian Free Trade Area), APTA (Asia-Pacific Trade Agreement), BIMSTEC, and D-8. The country also actively utilizes LDC preference programs from developed nations, including the EU's Everything But Arms (EBA) initiative and Japan's GSP. A bilateral FTA or CEPA with South Korea has not yet been concluded.
4
Regional Agreements
SAFTA, APTA, etc.
38 countries
LDC Preferences
DFQF access
Duty-free
EU EBA
all goods except arms
8 countries
SAFTA
South Asia
6 countries
APTA
incl. South Korea
Ongoing
FTA Negotiations
Turkey, Japan, etc.
Key Trade Agreements Compared
Bangladesh Major Trade Agreements (2020)
| Agreement | Members | Preference Level | Key Products | Korea Relevance |
|---|---|---|---|---|
| SAFTA | 8 countries (South Asia) | LDC special treatment | Garments, agricultural goods | — |
| APTA | 6 countries (Korea, China, India, etc.) | Product-specific tariff reduction | Chemicals, machinery, plastics | Korea included |
| EU EBA | EU 27 member states | Duty-free, quota-free | Garments, fisheries, leather | — |
| Japan GSP | Japan | LDC preference duty-free | Garments, leather, fisheries | — |
| BIMSTEC | 7 countries (Bay of Bengal) | Under negotiation | Agricultural goods, manufacturing | — |
| D-8 | 8 countries (Islamic cooperation) | Partial PTA implemented | Agricultural goods, textiles | — |
APTA is the only multilateral trade agreement that includes South Korea. When exporting from Korea to Bangladesh, reduced tariffs may apply on APTA-listed products, subject to presentation of an APTA Certificate of Origin (C/O).
EU EBA vs. APTA: A Comparison
EU EBA (Maximum Benefit)
BenefitDuty-free, quota-free
CoverageAll goods except arms
Rules of OriginDouble transformation rule
RiskExpires after 2029 LDC graduation
APTA (Korea-Relevant)
Benefit10–50% reduction by product
Coverage~4,000 product lines
Rules of OriginAPTA origin criteria
DevelopmentBroader concessions under negotiation
01
LDC Graduation and the Reshaping of Trade Agreements
Bangladesh's scheduled LDC graduation in 2026 (with a transition period extending to 2029) will fundamentally reshape its trade agreement landscape. (1) EU EBA termination: duty-free access shifts to GSP+ or Standard GSP (tariffs apply). (2) Japan GSP change: LDC preferences end, transitioning to general developing-country GSP. (3) SAFTA LDC special treatment expires. (4) DFQF access ends: LDC preferential tariffs from 38 developed countries disappear. The Bangladeshi government is pursuing EU GSP+ eligibility and actively negotiating new FTAs.
02
APTA and Opportunities for Korean Exporters
APTA (Asia-Pacific Trade Agreement) is a preferential trade arrangement with six participating countries: South Korea, China, India, Bangladesh, Sri Lanka, and Laos. (1) Korea → Bangladesh: tariff reductions of 10–50% on approximately 2,000 product lines. (2) Bangladesh → Korea: preferential treatment on approximately 1,500 product lines. (3) Rules of Origin: local value-added content of at least 45% plus an APTA Certificate of Origin required. Korean exporters can confirm APTA-covered products through KITA's FTA portal and obtain a C/O to reduce tariff costs.
03
FTA Negotiation Status
Bangladesh is actively pursuing FTAs in preparation for LDC graduation. (1) Korea–Bangladesh CEPA: joint study completed; pre-negotiation stage. (2) Turkey FTA: bilateral negotiations underway. (3) China FTA: feasibility study stage. (4) Japan EPA: early-stage discussions. (5) RCEP membership: interest expressed. A Korea–Bangladesh CEPA is projected to increase bilateral trade by more than 30%.
04
Implications for Korean Companies
(1) Maximize APTA use: currently the only preferential framework between Korea and Bangladesh. (2) Certificate of Origin: obtain an APTA C/O from the Korean Chamber of Commerce (fee: KRW 10,000). (3) CEPA readiness: expect significant reductions in textile, chemical, and machinery tariffs upon conclusion. (4) LDC graduation risk: monitor shifts in the competitiveness of Bangladeshi exports in EU and Japanese markets. (5) GSP+ conditions: track Bangladesh's ratification progress on human rights, labor, and environmental conventions.
Evolution of Trade Agreement Frameworks
2006
SAFTA enters into force
→↓
2007
APTA 4th round of concessions
→↓
2011
BIMSTEC FTA discussions begin
→↓
2017
APTA concession expansion
→↓
2020
Korea–Bangladesh CEPA joint study
→↓
2026
Scheduled LDC graduation
Korea–Bangladesh Trade 2020Bilateral trade analysis
Bangladesh Customs Clearance Procedures 2020A practical guide to import customs clearance
Bangladesh has maximized the benefits of its LDC status, but with graduation approaching in 2026, building a new trade agreement framework has become urgent. Korean companies should actively leverage APTA now, closely monitor progress on a Korea–Bangladesh CEPA, and develop medium-to-long-term trade strategies accordingly.
Trade AgreementFTASAFTA2020Preferential Tariff
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