Arya News - With chief negotiators appointed and diplomatic groundwork laid, Dhaka is positioning itself to cement formal trade ties with two of the world’s most powerful economic blocs.
DHAKA – Bangladesh is preparing to launch formal negotiations for a free trade agreement with the European Union while pressing ahead with its bid to join the Regional Comprehensive Economic Partnership (RCEP), as the country steps up its efforts.
The dual push marks a significant step for the country. With chief negotiators appointed and diplomatic groundwork laid, Dhaka is positioning itself to cement formal trade ties with two of the world’s most powerful economic blocs.
Formal steps for the EU trade negotiations are expected to begin next month. Commerce Minister Khandakar Abdul Muktadir confirmed that an initial exchange of formal letters with the EU has already taken place, agreeing to enter negotiations for a free trade agreement (FTA).
“We are hopeful that we will get the date of engagement for the negotiation with the EU after August,” Muktadir told The Daily Star.
An additional secretary from the Ministry of Commerce has been named Bangladesh’s chief negotiator, while the EU has similarly appointed its lead trade representative.
The EU remains Bangladesh’s largest export destination. According to European Commission data, Bangladesh was the EU’s 35th-largest trading partner in 2025, accounting for 0.5 percent of total EU trade in goods. Conversely, the EU was Bangladesh’s largest trading partner, capturing a 21.5 percent share of the country’s global merchandise trade.
Bilateral trade in goods reached €23.3 billion in 2025, leaving the EU with a €19.1 billion trade deficit in Bangladesh’s favour. EU imports from Bangladesh are overwhelmingly dominated by textiles, which comprised nearly 94 percent of total shipments in 2025.
Furthermore, Bangladesh is the largest beneficiary of the EU’s Everything But Arms (EBA) arrangement, with €19 billion worth of exports benefiting from these duty-free preferences in 2024 at a 96 percent utilisation rate.
EU foreign direct investment stock in Bangladesh stood at €2.5 billion in 2024, while Bangladesh’s FDI in the EU totalled €86 million.
Parallel to the European talks, Commerce Secretary Md Ataur Rahman Khan is currently visiting Australia and New Zealand to rally support for Bangladesh’s accession to RCEP.
The 15-nation free trade agreement in the Asia-Pacific region — comprising the ten ASEAN members alongside Australia, China, Japan, New Zealand, and South Korea — encompasses 30 percent of global GDP and represents a $32 trillion economic zone.
Muktadir expressed confidence in Bangladesh’s prospects for joining RCEP, noting that the country has satisfied foundational criteria, such as submitting formal applications, and holds an advantage due to existing bilateral trade pacts with members Japan and South Korea.
However, the minister did not say exactly when Bangladesh may gain RCEP accession.