Bangladesh-China FTA talks to begin after PM's visit: State minister

Bangladesh and China will begin formal negotiations on a free trade agreement by the end of this year, according to Ahasanul Islam Titu, state minister for commerce.

"The negotiations will commence after the prime minister's scheduled visit to China this year," said Titu at a seminar titled "China-Bangladesh Free Trade Agreement: A Mutually Beneficial and Win-Win Choice," held at the Chinese Embassy in Dhaka today.

Titu said Bangladesh is working to sign FTAs with 26 countries, including China, which is Bangladesh's top trading partner and a key development partner.

"We want to have it. We want to do it for mutual development," said the state minister regarding the FTA with China.

He said, "Our expectations include increased Chinese investments in the manufacturing, infrastructure, and logistics sectors, aiming to generate more employment opportunities."

Chinese Ambassador Yao Wen said the China-Bangladesh FTA will bring significant benefits to Bangladesh. 

According to the feasibility study report, the overall tariff on goods imported from China to Bangladesh will significantly decrease after the signing of the FTA, leading to a reduction in import prices, he said.

"This (FTA) will have an immediate effect on alleviating inflation in Bangladesh. In the long term, the decrease in prices of raw materials for Bangladeshi products will definitely enhance their competitiveness in the international market, laying a solid foundation for Bangladesh to continuously increase its foreign exchange reserves," he added.

Ambassador Yao Wen also said the FTA will also make China's investment in Bangladesh more convenient and efficient, thus making further contributions in creating employment opportunities, upgrading industries and diversifying exports.

He also suggested signing FTAs with other countries is an inevitable choice for Bangladesh to achieve its "Vision 2041".

The foundation of economic and trade cooperation between China and Bangladesh is solid, extensive, and diverse, he said.

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. 

In terms of investment, China's FDI stock in Bangladesh reached $3.2 billion by 2023, making China the second-largest investing country in Bangladesh.

Ambassador Yao also said, Chinese enterprises have constructed 7 railways, 12 roads, 21 bridges and 31 power plants in Bangladesh. 

The China-Bangladesh FTA covers areas such as trade in goods, trade in service, investment, e-commerce and high-tech industry cooperation, providing a basic framework and solid guarantee for future bilateral economic and trade cooperation, he noted.

Mohammad Abdur Razzaque, chairman of RAPID, a think-tank; Al Mamun Mridha, secretary general of Bangladesh China Chamber of Commerce and Industry; and Ke Changliang, president of Chinese Enterprises Association in Bangladesh also spoke among others.