Bangladesh, Malaysia begin FTA talks, target deal by 2027

Bangladesh and Malaysia have begun formal negotiations on a free trade agreement (FTA), aiming to conclude a modern, balanced and mutually beneficial deal by 2027 to expand bilateral trade and investment and strengthen their economic partnership.

The first round of talks began on Tuesday morning at the Pan Pacific Sonargaon Hotel in Dhaka and will continue until 29 October. Commerce Secretary Sharif Uddin Ahmed Chowdhury inaugurated the three-day negotiations, attended by senior officials from both countries.

Malaysia's 31-member delegation is led by its chief negotiator, Dr Rashidi Said, while Bangladesh's chief negotiator is Commerce Ministry Additional Secretary Khadija Nazneen. At the opening session, the two sides signed the terms of reference (ToR), outlining the scope and framework of the negotiations.

Addressing the event as chief guest, Sharif Uddin Ahmed Chowdhury said Bangladesh-Malaysia relations had been strengthened by historical friendship and shared cultural and religious values. Although bilateral trade relations were promising, considerable potential for diversifying trade and investment remained untapped, he added.

The commerce secretary said the commitment to conclude a sustainable and mutually beneficial FTA by 2027 had been discussed during Prime Minister Tarique Rahman's visit to Malaysia in June, when he met Malaysian Prime Minister Anwar Ibrahim. The formal negotiations mark the beginning of the institutional process to fulfil that commitment, he added.

He described the proposed agreement as important for Bangladesh as it prepares to graduate from the least developed country (LDC) category and seeks to maintain its competitiveness in international markets.

Bangladesh, located at the crossroads of South and Southeast Asia, offers potential opportunities for Malaysian investors in areas including the halal industry, semiconductor skills development, digital trade, logistics and joint investment in special economic zones, he said.

The commerce secretary also expressed gratitude for Malaysia's support for Bangladesh's aspiration to join the Regional Comprehensive Economic Partnership (RCEP), a regional economic bloc.

Malaysia's chief negotiator, Dr Rashidi Said, said the proposed FTA was not merely an agreement to reduce tariffs but a strategic initiative to establish a long-term and balanced economic partnership between the two countries.

He said bilateral trade reached around US$2.84 billion in 2025, adding that the agreement could create new opportunities for trade expansion, industrialisation and investment.

Rashidi expressed optimism that the negotiations could be completed by 2027 through mutual understanding, flexibility and a realistic action plan. He also hoped that the Malaysian prime minister's upcoming visit to Bangladesh would give fresh momentum to the process.

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Bangladesh's chief negotiator, Khadija Nazneen, said the FTA would facilitate market access in both countries, reduce trade barriers and create new opportunities for investment and employment. It would also make trade activities more transparent, simpler and more predictable, she added.

She said the negotiations would focus on reaching agreement on key issues, including trade in goods and services, rules of origin and customs procedures, while safeguarding the interests of both countries.

Representatives from both sides reaffirmed their commitment to reaching a balanced, effective and long-term agreement through constructive dialogue, mutual respect and flexibility.