Free Trade Agreements Bangladesh

In order to boost exports and diversify exports, the government is now focusing on free trade agreements and EPAs with potential trading partners. The government plans to develop a new directive on preferential and free trade agreements to prepare for post-graduation. The government has concluded tough EU agreements in the 2001 Trade and Development Cooperation Agreement between the two parties, in which Dhaka has accepted EU more WTO demands, to allow, for example, the monopolistic rights of companies on seeds (patenting). The government was in controversial talks with the United States on a framework agreement on trade and investment, a prelude to a possible free trade agreement with Washington; 2010, after several years of discussions, was not signed. The United States then asked Bangladesh to sign an agreement on the Forum for Trade and Economic Cooperation, but it has not yet been signed; India has lobbied for a bilateral free trade agreement with Bangladesh, but the World Bank has made it clear that India will benefit more; Pakistan has also lobbied for a free trade agreement with Bangladesh; Bangladesh, for its part, is interested in developing a free trade agreement with China. It called on the Bangladesh Trade and Customs Commission (BTTC) to update existing policy directions for the 2010 free trade agreement by integrating changing models of secular and national trade. As the least developed country (LDC), Bangladesh enjoys the most favourable regime available under the EU`s Generalised Preference System (GSP), namely the „everything but arms“ regime (EBA). The EBA grants the 48 LDCs – including Bangladesh – a duty-free quota, free access to the EU for exports of all products except arms and ammunition. Vietnam, Thailand, Morocco, Malaysia, the United States, Canada, Senegal, Nigeria, Kenya, South Korea, India, KSA, South Africa, Mexico and Egypt, as well as three regional blocs of the Gulf Cooperation Council, the Eurasian Economic Commission and MERCOSUR are the other countries or regions under review for trade negotiations. The official said that the pattern of global trade has changed over the past decade and that developed countries are focusing on new themes as they sign free trade agreements or ASPs. Bangladesh has been a member of the WTO since 1995 and, as the least developed country, benefits from the EU`s „Everything but Arms“ regime, which grants duty-free access to all exports except arms and ammunition. The EU is cooperating closely with Bangladesh under the EU-Bangladesh cooperation agreement concluded in 2001.

This agreement offers a wide margin of cooperation and covers trade and economic development, human rights, good governance and the environment. Bangladesh is currently negotiating with Nepal, Bhutan, Indonesia and Sri Lanka on the PTA or free trade agreements to obtain preferential or duty-free access to the market. Among these countries, Bangladesh has almost concluded trade negotiations with Bhutan. Three years after graduation, Bangladesh could lose its duty-free export facility in its main export markets. The Department of Commerce official stated that the government was focusing on TRADE agreements or PTAs with major trading partners in order to pursue duty-free market access after the conclusion. The new guidelines will address issues such as intellectual property rights, technology and the environment. In an interview with the FE, a senior Trade Ministry official said the ministry was currently in the negotiation phase of free trade and PTA agreements with 17 countries.