Bangladesh and Malaysia begin FTA talks to boost bilateral trade

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Bangladesh and Malaysia have begun formal negotiations on a free trade agreement (FTA), aiming to expand bilateral trade, reduce tariff barriers and create new opportunities for exporters.

The talks began today at the Pan Pacific Sonargaon Hotel in Dhaka, with Commerce Secretary Sharf Uddin Ahmed Choudhury inaugurating the meeting. A 31-member Malaysian delegation, led by Dr Rashidi Said, is negotiating with the Bangladesh team headed by Khadiza Nazneen, an additional secretary at the commerce ministry.

Both countries have exchanged preliminary draft agreements, which are being discussed alongside market access, product lists and a timeline for completing the deal. A joint statement issued during Prime Minister Tarique Rahman’s visit to Malaysia set a target of concluding the agreement by 2027.

Bangladesh is seeking to diversify exports and reduce its substantial trade deficit with Malaysia. In fiscal year 2024–25, Bangladesh exported goods worth $282.55 million to Malaysia while importing $2.29 billion, leaving a deficit of about $2.01 billion.

Officials expect an agreement to improve market access for Bangladeshi agricultural goods, leather products, footwear, pharmaceuticals, processed foods and engineering products, beyond the country’s traditional garment exports.

Negotiations may also cover services, investment, rules of origin and employment opportunities for Bangladeshi workers. Training and recruitment for Malaysia’s semiconductor industry could be another area of discussion.

For Bangladesh, securing competitive access to the Malaysian market after graduating from least developed country status is a key objective of the proposed agreement.