As negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with Bangladesh approach their conclusion, the South Korean government has met with companies looking to expand into the country to discuss support strategies.
The Ministry of Trade, Industry and Energy announced that Trade Negotiation Chief Yeo Han-goo held a meeting on July 29 at the Korea Chamber of Commerce and Industry with companies already operating in Bangladesh and those considering entry. Nine companies from the textile manufacturing, engineering and construction, transportation, and ICT sectors attended the meeting.
Bangladesh, with a population of approximately 170 million, has shown promising growth, averaging about 6% annually over the past decade. As it prepares to graduate from the least developed country status this year, the nation is pushing for industrial diversification and market opening, with significant demand for infrastructure expansion in areas such as roads and aviation.
South Korean companies are also entering Bangladesh's manufacturing sectors, including textiles and electronics, as well as infrastructure projects like plants and airports. Bilateral trade reached $2.37 billion last year, a 19.6% increase from the previous year.
The CEPA negotiations between South Korea and Bangladesh have progressed through four official rounds since the declaration to commence talks in November 2024. The two countries have made advancements, including agreements on trade technical barriers and customs facilitation. The fifth round of negotiations, which began on July 27 in Seoul, is currently addressing remaining issues related to market access for goods and services.
During the meeting, companies expressed a strong demand for South Korean involvement in Bangladesh's energy and power grid, transportation and logistics infrastructure, and digital transformation sectors. However, they requested the government to simplify customs procedures, establish cooperation platforms among businesses, and ensure stability in foreign remittances and payments to facilitate smoother market entry.
Yeo Han-goo emphasized, "The government can help our companies operating in manufacturing, infrastructure, and services by reducing time, costs, and uncertainties through mutually beneficial intergovernmental agreements." He noted the importance of verifying that the contents of the CEPA negotiations align with actual business conditions as the talks near completion.
He added, "Once the CEPA is signed, tariff burdens will decrease, and a framework to address on-site challenges will be established, enhancing business predictability. We will derive tangible results that our companies can feel based on the voices from the field."
* This article has been translated by AI.
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