Diplomatic Correspondent :
Bangladesh and China are set to open a new chapter in their economic relationship by signing a Free Trade Agreement (FTA) before 2026.
This agreement aims to boost duty-free access for a wide range of products, enhance trade and investment, and strengthen the strategic partnership between the two nations.
Discussants at the seminar titled “China-Bangladesh Free Trade Agreement: A Mutually Beneficial and Win-Win Choice,” held at the Chinese Embassy on Sunday, emphasised the potential benefits despite existing trade gaps and hurdles.
Both countries are expected to gain significantly from the FTA, with China playing a pivotal role in ensuring the agreement’s success for Bangladesh.
In the fiscal year 2022–23, trade between China and Bangladesh reached $24 billion.
According to the Export Promotion Bureau, Bangladesh’s exports to China amounted to $683 million in FY23. Although China offers duty-free access to 98% of products, Bangladesh’s exports to China have not seen a substantial increase.
State Minister of Commerce Ahasanul Islam Titu, speaking as the Chief Guest, affirmed Bangladesh’s commitment to moving forward with the FTA. “We want to move ahead with FTA.
There is no doubt. We have to find out ways how FTA can boost trade and investment and create jobs,” he stated.
He also emphasised China’s dual role as both a trading and development partner, highlighting the need to overcome existing hurdles to maximise mutual benefits.
Bangladesh is gearing up for the first round of FTA negotiations following Prime Minister Sheikh Hasina’s upcoming visit to China. Chinese Ambassador Yao Wen described the anticipated visit as a potential “game changer,” signalling a new era in China-Bangladesh relations.
“We will know in due time. I believe the visit will be another historical one. This will be a game-changer. There will be a new chapter in terms of China-Bangladesh relations. So, let’s wait and see,” Ambassador Yao Wen remarked.
Prime Minister Sheikh Hasina is expected to visit China in July, with a tentative visit to Delhi following India’s Lok Sabha election results.
In his address, Ambassador Yao Wen highlighted the FTA as a crucial framework for the stable and healthy development of bilateral economic and trade cooperation.
“The foundation of economic and trade cooperation between China and Bangladesh is solid, extensive, and diverse. In terms of trade, China has maintained its position as Bangladesh’s largest trading partner for 13 consecutive years, with bilateral goods trade reaching $24 billion in 2023,” he noted.
China’s investment in Bangladesh is also significant, with its Foreign Direct Investment (FDI) stock reaching $3.2 billion by 2023, making China the second-largest investor in Bangladesh. Additionally, Chinese enterprises have been instrumental in the development of Bangladesh’s infrastructure, constructing seven railways, 12 roads, 21 bridges, and 31 power plants.
About the range of the FTA, he said that the FTA covers areas such as trade in goods, trade in services, investment, e-commerce, and high-tech industry cooperation, providing a basic framework and solid guarantee for future bilateral economic and trade cooperation.
About the necessity of the FTA, the Ambassador said that the FTA is imperative for the enhancement of bilateral economic and trade relations.
“China and Bangladesh are strategic partners that will be further upgraded in the future. However, the only trade and investment agreement between the two countries, namely the Agreement on the Encouragement and Reciprocal Protection of Investments signed in 1996, does not align with the increasingly close relations and exchanges between our two countries,” he emphasised.