Bangladesh prepares to begin formal FTA negotiations with the European Union while pursuing RCEP membership, seeking stronger market access and trade opportunities ahead of its graduation from least-developed country status.
Bangladesh is stepping up efforts to strengthen its international trade position by preparing for formal negotiations on a free trade agreement (FTA) with the European Union while advancing its bid to join the Regional Comprehensive Economic Partnership (RCEP). The dual-track strategy reflects Dhaka’s efforts to secure preferential market access and diversify export opportunities as the country prepares for major changes following its graduation from least-developed country status.
Bangladesh is expected to begin formal discussions with the European Union in the coming months. According to Commerce Minister Khandakar Abdul Muktadir, the two sides have already exchanged formal letters indicating their intention to enter negotiations for an FTA. The process is expected to provide a framework for discussions on tariffs, market access and broader trade-related issues.
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The proposed EU agreement is particularly significant because the European market represents one of Bangladesh’s most important export destinations. A formal trade agreement could help maintain favourable access for Bangladeshi exporters and provide greater certainty for businesses as existing preferential arrangements change after the country’s LDC graduation.
The government is simultaneously pursuing membership in RCEP, one of the world’s largest regional trade agreements. Joining the grouping could provide Bangladesh with greater access to major Asian markets and strengthen its integration into regional supply chains. The move also reflects Dhaka’s broader objective of expanding commercial relationships beyond traditional markets.
Bangladesh’s push for multiple trade agreements comes at a critical stage for its economy. Graduation from the LDC category is expected to alter some of the trade preferences the country currently enjoys, creating pressure to secure alternative arrangements that can protect export competitiveness. The government is therefore seeking deeper trade relationships with major economic blocs and individual countries.
The strategy also aims to encourage greater diversification of Bangladesh’s exports. The country’s export sector remains heavily dependent on the ready-made garment industry, making expanded market access and the development of new export categories important priorities for long-term economic resilience.
An FTA with the EU could provide opportunities for Bangladeshi businesses to strengthen their presence in European markets while encouraging improvements in product standards, competitiveness and supply-chain capabilities. Closer integration with RCEP economies could similarly create opportunities to participate in regional production networks and attract investment.
The government has already intensified its efforts to establish trade agreements with major partners. Bangladesh recently signed a trade agreement with South Korea, while also pursuing broader arrangements with other economies to reduce the potential impact of changes to its preferential trading status.
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The country's FY2026-27 export target of US$55.3 billion further underlines the importance of expanding international market access and strengthening export growth.Bangladesh’s simultaneous push for an EU FTA and RCEP membership therefore represents a broader strategy to reposition its economy within global and regional trade networks. By securing stronger market access, attracting investment and diversifying commercial partnerships, Dhaka aims to maintain export momentum and improve economic resilience during its transition to a developing economy.