BD needs to accelerate FTA drive to face post-graduation challenges: Korean envoy

Bangladesh needs to accelerate its drive to ink both bilateral and multilateral free trade agreements (FTA) to keep its growth on track after graduation, South Korean Ambassador in Dhaka Park Young-sik has said.

He also pointed out that time is running out for Bangladesh, as such negotiations take a long time.

Explaining the urgency of signing the EPA, he said that in Korea, initiating the FTA requires some internal procedures, including approval from the National Parliament.

“Korean commerce ministry is also busy due to a lot of engagements in FTA negotiations with other countries or regions. Therefore, I think that this is a good time, and maybe the last one, to start the negotiations of bilateral EPA”, the Korean envoy said while briefing the members of the Diplomatic Correspondents Association (DCAB), on Sunday evening.

Mr Park argued that an economic partnership agreement (EPA) between Bangladesh and Korea would help Bangladesh reduce the existing trade imbalance between the two countries.

Though the bilateral trade crossed the 3-billion dollar mark, it is heavily in favour of Korea, as Bangladesh’s exports to Korea were 624 million dollars last year.

The envoy made it clear that Korea is not India, China, or the US and does not have any strategic interests in inking such deals.

“Therefore, both countries could further develop bilateral relations in a mutually beneficial way through signing the EPA”, he added.

Though Bangladesh’s exports to Korea have increased to 624 million US dollars in 2023, there is huge potential to multiple the figure, he said.

Korea has extended duty- and quota-free access to 95 per cent of Bangladesh's products under the Asia Pacific Trade Agreement since 2008, but after graduation, Bangladesh will be deprived of the facility for many items.

He said Bangladesh is far behind in exporting RMG goods to Korea compared to China, Vietnam, and Indonesia, as these countries have bilateral and multilateral free-trade agreements with Korea.

“As a result, these countries are gaining a competitive edge in the Korean RMG market. An EPA between Korea and Bangladesh can provide an impetus to increase Bangladesh’s share in Korea’s RMG-related imports”, the envoy said.

According to the envoy, footwear & leather, jute, ICT, pharmaceuticals, ship building & breaking industry, blue economy & deep sea fishing, agriculture & agricultural machinery, green house & carbon trading scheme are some of the potential sectors where both countries can establish a new chapter of cooperation within the framework of EPA.

He mentioned that the EPA between Korea and Bangladesh has been discussed since early 2023, but no real progress has been made.

“Earlier this year, the Korean Embassy presented the potentials of the EPA to the Ministry of Trade, Industry and Energy (MOTIE) of Korea, which responded positively to a real discussion on the EPA with Bangladesh,” the Korean envoy said, adding that the Korean Trade Minister and Bangladesh Commerce State Minister also discussed the issue when they briefly met during the 13th WTO Ministerial Conference held recently.

[email protected]