Bangladesh and Malaysia opened free trade negotiations in Dhaka on Tuesday, October 27, targeting a deal by 2027. Malaysia sold Bangladesh nearly five dollars of goods for every dollar it bought back in 2025, according to figures reported by Bernama.
Story in brief
- The first round runs at Dhaka’s Pan Pacific Sonargaon Hotel through October 29. The two sides signed the Terms of Reference and are working toward a concluded agreement in 2027.
- Malaysia’s chief negotiator, Rashidi Said, leads a 31-member delegation. Additional Commerce Secretary Khadija Nazneen leads Bangladesh’s team. Commerce Secretary Sharf Uddin Ahmed Choudhury inaugurated the round.
- The talks follow a June commitment by Prime Minister Tarique Rahman and Malaysia’s Anwar Ibrahim to conclude a sustainable, mutually beneficial agreement by 2027.
- Bangladesh is seeking trade agreements ahead of its scheduled November 24 graduation from least-developed-country status. Negotiations do not themselves secure tariff preferences; access will depend on the final agreement and its entry into force.
Talks at the Sonargaon
The negotiations were launched on Tuesday at the Pan Pacific Sonargaon. The Terms of Reference establish their framework and scope. The two countries have exchanged preliminary drafts, and the first round covers the texts, market access, product lists and a timetable. The proposed agreement includes goods, services, customs procedures and rules of origin, which determine whether a product qualifies for preferential treatment.
Choudhury said bilateral trade offered opportunities for diversification and investment. He described an FTA as a way to address graduation challenges and maintain export competitiveness, and identified halal industries, semiconductor skills, digital trade, logistics and special economic zones as potential areas for Malaysian investment. He also thanked Malaysia for supporting Bangladesh’s ambition to join the Regional Comprehensive Economic Partnership.
Said described the proposed agreement as an economic partnership extending beyond tariff reductions. Both sides said flexibility and a practical roadmap would be needed to meet the 2027 target.
Two trade accounts
Bernama reported bilateral trade at about 2.84 billion dollars in calendar 2025, with Malaysian exports to Bangladesh of about 2.35 billion dollars and Bangladeshi shipments of roughly 500 million dollars. The rounded components total about 2.85 billion dollars; they should not be treated as precise figures that reconcile to the reported total.
The Business Standard reported figures for a different period. In fiscal 2024-25, Bangladesh exported goods worth 282.55 million dollars to Malaysia and imported 2.29 billion dollars, leaving a deficit of about 2.01 billion dollars. The fiscal figures and the calendar-year account cannot establish a year-on-year change by comparison with each other.
Commerce ministry officials say an agreement could improve access for products beyond readymade garments, including agricultural goods, leather, footwear, pharmaceuticals, processed food and engineering products. The negotiating texts must settle which tariff lines are opened and which rules of origin exporters must meet.
Agreements and graduation
The Daily Star reported that Bangladesh had signed the Japan Economic Partnership Agreement and a Comprehensive Economic Partnership Agreement with South Korea, with both awaiting ratification. Signing, ratification and entry into force are separate steps; the Malaysian agreement remains at the negotiating stage.
Bangladesh is pursuing agreements with eight to ten countries as it prepares for graduation, which is scheduled for November 24. Graduation does not end every preference in every market on that date. Transition arrangements differ by trading partner, and the benefits of a future Malaysian agreement will depend on its coverage and implementation date.
What happens next
- The first round is due to close on October 29, after discussion of draft texts, product lists and the roadmap to 2027.
- Both sides expect Anwar Ibrahim’s forthcoming Bangladesh visit to support the negotiations. No completed FTA was announced at the opening round.
- Exporters will need the final tariff schedules and rules of origin, followed by the steps required to bring an agreement into force.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report