Regional Trade Agreements of Bangladesh: An Overview

Bangladesh is a developing country with a rapidly growing economy. As a part of its economic development strategy, Bangladesh has entered into several regional trade agreements over the years. These agreements have played a crucial role in expanding the country`s trade and commerce, generating new employment opportunities, and boosting foreign investment. In this article, we will take a closer look at some of the most important regional trade agreements that Bangladesh is a part of.

South Asian Free Trade Area (SAFTA)

The South Asian Free Trade Area (SAFTA) was established in 2004 with the aim of promoting intra-regional trade among South Asian countries. Bangladesh, along with India, Pakistan, Sri Lanka, Nepal, Bhutan, and the Maldives, is a signatory to this agreement.

Under SAFTA, member countries have agreed to gradually reduce tariffs on goods traded within the region. The agreement covers trade in agricultural products, textiles and clothing, and other manufactured goods. SAFTA has helped to increase Bangladesh`s exports to other South Asian countries and has opened up new markets for its products.

Bangladesh-China Free Trade Agreement (BCFTA)

The Bangladesh-China Free Trade Agreement (BCFTA) was signed in 2010 and came into effect in 2011. This agreement aims to boost trade and investment between the two countries. China is Bangladesh`s largest trading partner and the agreement has further strengthened economic ties between the two nations.

Under BCFTA, Bangladesh has gained duty-free access to the Chinese market for more than 5000 products. This has helped to increase Bangladesh`s exports to China and has also encouraged Chinese investors to invest in Bangladesh.

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising of Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal. The organization was established in 1997 with the aim of promoting regional cooperation in various sectors including trade, investment, and tourism.

BIMSTEC has helped Bangladesh to increase its trade and commerce with other countries in the region. The organization has also played a key role in promoting regional connectivity and has helped to improve infrastructure in the region.

Conclusion

Regional trade agreements have played a vital role in Bangladesh`s economic development. These agreements have helped to increase trade, generate new employment opportunities and attract foreign investment. As Bangladesh continues to grow, it is likely that it will enter into more regional and international trade agreements in the future. These agreements will be important in helping Bangladesh to achieve its economic goals and become a more prosperous nation.