Korea, Bangladesh reach agreement in principle on CEPA
Trade Minister Yeo Han-koo, back row right, talks with his Bangladeshi counterpart, Khandaker Abdul Muktadir, at Bangladesh’s Ministry of Commerce in Dhaka, Tuesday. Courtesy of the Ministry of Trade, Industry and Energy
Korea and Bangladesh on Tuesday reached an agreement in principle on a comprehensive economic partnership agreement (CEPA), Seoul's industry ministry said Tuesday, as Seoul seeks to expand its presence in the South Asian market.
The agreement was reached during talks between Trade Minister Yeo Han-koo and his Bangladeshi counterpart, Khandaker Abdul Muktadir, in Dhaka, Bangladesh, according to the Ministry of Trade, Industry and Energy.
The agreement in principle means the two sides have concluded negotiations on the main provisions of the pact, while remaining technical issues will be finalized through working-level consultations.
A CEPA is a type of free trade agreement that promotes broader economic cooperation beyond market liberalization, including investment and other areas of economic collaboration.
The two countries launched CEPA negotiations in November 2024 and reached the agreement after five rounds of formal talks.
The ministry said the agreement is expected to provide Korea with a stronger foothold in the promising South Asian market, improve market access for Korean consumer goods, and expand the foundation for infrastructure and industrial cooperation.
Bangladesh, with a population of about 170 million, is the world's eighth-most populous country and one of the fastest-growing economies in South Asia, according to the ministry.
It is the second South Asian country after India with which Korea has concluded a CEPA. It is also the largest new free trade agreement partner secured under the current administration.
Under the agreement, the two countries agreed to eliminate tariffs on key products as part of their market-opening commitments.
Tariffs on Korean domestic products, such as instant noodles, processed coffee, seasoned seaweed and confectionery products, will be eliminated, according to the ministry.
Bangladesh also agreed to remove tariffs on diesel fuel, Korea's top export item to the country, as well as complete knock-down kits for vehicles and all automotive parts.
In addition, the agreement secures tariff elimination on products, such as lubricant base oils and washing machines, which Bangladesh had not opened up under previous free trade agreements.