Staff reporter:
Bangladesh and Malaysia have made progress towards signing a proposed Free Trade Agreement (FTA), with the first round of formal negotiations concluding positively in the city today.
The three-day talks, which began on October 27, focused on drafting and reviewing various chapters of the proposed agreement to expand bilateral trade, boost mutual investment and strengthen cooperation in technology and the digital economy, said a press release.
The two sides have tentatively targeted January 2027 for the second round of negotiations.
During the discussions, 13 working groups reviewed draft chapters and structural issues relating to trade in goods and services, investment, rules of origin, customs procedures, digital trade, intellectual property rights, sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT) and issues concerning small and medium-sized enterprises (SMEs).
The negotiations concluded at the Pan Pacific Sonargaon Hotel in the capital, where the delegations from both countries exchanged views on key areas of economic cooperation and identified potential areas for collaboration.
At the closing session, Bangladesh’s chief negotiator and Additional Secretary to the Ministry of Commerce Khadiza Nazneen said the proposed FTA could take the existing friendly relations between the two countries to a new economic height.
Highlighting Malaysia’s progress in electronics, semiconductors and digital technologies, she said the agreement could create new opportunities for technology transfer, investment attraction and industrial cooperation.
The Bangladeshi side thanked Malaysian chief negotiator Dr Rashidi Said and his delegation for their constructive engagement during the negotiations.
Both sides expressed their commitment to finalising a practical and mutually beneficial agreement within the stipulated timeframe while maintaining a
balance between their respective interests.
The next round of negotiations is expected to focus on resolving differences over various chapters and reaching mutually acceptable positions.
The proposed FTA is considered important for Bangladesh as it prepares to graduate from the least developed country (LDC) category and seeks to maintain its competitiveness in international markets, diversify export destinations and attract foreign investment.
An effective trade agreement with Malaysia, a key economy in the Association of Southeast Asian Nations (ASEAN), could widen market access for Bangladeshi goods and services, enhance technological capabilities in industries and strengthen the country’s participation in regional supply chains.
However, the potential benefits will depend on the final terms of the agreement, the scope of tariff concessions, safeguards for domestic industries and the implementation framework.
The first round of negotiations marks another step forward in the process of establishing a free trade agreement between Bangladesh and Malaysia, with the
next round expected to advance discussions towards a final framework.
