UK-Bangladesh Trade Surges to Record £4.7B in 2022

Bangladesh has proposed a joint feasibility study with Thailand on a Free Trade Agreement (FTA) to enhance bilateral trade, following discussions between Ambassador Faiyaz Murshid Kazi and Thai Prime Minister advisor Dr. Nalinee Taveesin. They also considered launching a direct coastal shipping system. The postponed 6th Joint Trade Committee (JTC) meeting will focus on FTA components and investment cooperation. Thailand has granted Bangladesh duty-free, quota-free access to its market until 2026, with bilateral trade currently around $910.05 million. Efforts are also being made to revive the Thai-Bangladesh Business Association.

Bangladesh is shifting its trade strategy from pursuing a Comprehensive Economic Partnership Agreement (CEPA) with India to applying for membership in the Regional Comprehensive Economic Partnership (RCEP), the largest trade bloc led by China. The commerce ministry will submit the application this week, focusing on negotiating Free Trade Agreements (FTAs) with countries like Japan and China.

Bangladesh's Foreign Secretary, Md. Jashim Uddin, is in Washington for a series of meetings aimed at strengthening ties with the United States. Uddin, who recently attended the UN General Assembly in New York, seeks U.S. support for Bangladesh's reform initiatives in areas such as the economy, trade, investment, labor rights, governance, and the Rohingya crisis.

Since 2009, Bangladesh has restricted trade with Pakistan, placing most imported goods under a "red lane" due to security concerns. However, as of October 2, the National Board of Revenue (NBR) has lifted these restrictions, allowing all Pakistani goods to be exempt from the "red lane" under the ASYCUDA World system.

Bangladesh's position in international trade is concerning, ranking fourth according to a new World Bank report, with a score of 53.86 out of 100. The country's scores include 51.56 in legal framework, 29.52 in government services, and 80.50 in operational efficiency, indicating significant challenges in laws, government services, and management that deter foreign investment and slow export growth.

Bangladesh and Malaysia have agreed to resume discussions on a Free Trade Agreement (FTA) following Malaysian Prime Minister Anwar Ibrahim's recent visit to Dhaka, which has strengthened bilateral ties. This visit marks the first official engagement by a head of government since the formation of Bangladesh's interim government and symbolizes Malaysia's solidarity with Bangladesh during challenging times.