Bangladesh recently initiated formal negotiations with the Association of South East Asian Nations (ASEAN) for a free trade agreement (FTA) to enjoy greater market access in the bloc after graduating from the least developed country (LDC) group.
An FTA will do away with the need to sign bilateral agreements with the 10 ASEAN member nations.
Commerce secretary Mohammad Jafar Uddin signed the negotiation letter, according to bangla media reports.
Bangladesh foresees the ASEAN region, which has a consumer base of 642 million, as a big market.
Bangladesh is at present at the final stages of its negotiations with Indonesia for a preferential trade agreement (PTA) for duty privileges on select goods traded between the two countries.
However, the negotiation is now facing a stalemate since Indonesia disagrees with some terms, particularly in regards to some major export items such as garments, under the proposed PTA.
Bangladesh has been a member of the ASEAN Regional Forum since 2006, which would be an advantage for the country during negotiations, the secretary said.
By 2030, the ASEAN region will be the fourth-largest economy in the world. Its GDP increased from $2,373 billion in 2007 to $4,034 billion in 2016, according to a study titled ‘Bangladesh A story of a Phoenix.’ The secretary added that negotiations to sign a PTA with Nepal is at the final stage as Kathmandu has agreed to sign in January.
Bangladesh signed a PTA with Bhutan on December 6.
Under the deal, Bangladesh will enjoy duty-free benefits on the exports of 100 local products, including garments, processed agricultural goods and electronics. Bhutan will enjoy duty benefits on 34 products.
