Bangladesh Shifts Trade Focus to RCEP Membership

The European Union (EU) seeks to deepen collaboration with Bangladesh through a Comprehensive Partnership and Cooperation Agreement (CPCA), aiming to bolster trade, governance, and policy alignment. In 2024, Bangladesh exported $18.15 billion worth of garments to the EU, which accounts for over 64% of Bangladesh's apparel exports.

In the first five months of fiscal year (FY) 2024-25, Bangladesh's trade deficit decreased by 20 percent to $7.88 billion compared to $9.85 billion in the same period of FY24.

China remained Bangladesh's largest trading partner in FY24, with bilateral trade reaching Tk 2.246 trillion, according to the Bangladesh Bureau of Statistics (BBS). In contrast, India ranked second with Tk 1.463 trillion. China’s share in Bangladesh’s total trade rose to 15.17% in June FY24, while India’s dropped to 8.47%. Bangladesh imports industrial raw materials and consumer goods from China, exporting jute products and hides in return.

Bangladesh's economy is gradually rebounding from domestic and global challenges, with improvements in foreign-exchange reserves and trade activity during the October-December quarter of FY25, according to the Metropolitan Chamber of Commerce and Industry (MCCI). However, its quarterly report for July-September FY25 warns of pressing issues, including high inflation, reduced external demand, sluggish public spending, and weak investment activity.

Bangladesh is set to sign a defence equipment procurement agreement with Japan, following consent from Chief Adviser Professor Muhammad Yunus. The agreement, revised by Japan based on Bangladesh's feedback, is now under final review by multiple government divisions.

Pakistan's High Commissioner to Bangladesh, Syed Ahmed Maroof, stressed that trade will be a key driver of future Pakistan-Bangladesh relations, enhancing economic, political, and cultural ties.