Yeo Han-koo, chief trade negotiator at South Korea's Ministry of Trade, Industry and Energy, delivers remarks at a ceremony declaring the conclusion of South Korea-Bangladesh Comprehensive Economic Partnership Agreement negotiations in Dhaka, Bangladesh, on Tuesday (local time). [Ministry of Trade, Industry and Energy]
Yeo Han-koo, chief trade negotiator at South Korea's Ministry of Trade, Industry and Energy, delivers remarks at a ceremony declaring the conclusion of South Korea-Bangladesh Comprehensive Economic Partnership Agreement negotiations in Dhaka, Bangladesh, on Tuesday (local time). [Ministry of Trade, Industry and Energy]

South Korea has reached an agreement in principle on a Comprehensive Economic Partnership Agreement (CEPA) with Bangladesh, a nation of nearly 170 million people. The deal — the second trade agreement Seoul has concluded with a South Asian country after India — is expected to expand exports of key products such as steel, petroleum and chemical goods, as well as consumer items including K-food and K-beauty products.

The Ministry of Trade, Industry and Energy said Tuesday that Yeo Han-koo, South Korea's chief trade negotiator, declared the agreement in principle alongside Bangladeshi Commerce Minister Khandaker Abdul Muktadir at a ceremony in Dhaka.

The declaration means the two sides agreed on the core terms of the agreement and effectively concluded negotiations, with remaining technical details to be finalized through working-level consultations.

The two countries reached the agreement after five rounds of formal negotiations following the launch of talks in November 2024.

The government cited three key outcomes of the CEPA: securing a foothold in a promising South Asian market, improving market access conditions for K-consumer goods and major export products, and expanding the foundation for infrastructure and industrial cooperation.

Bangladesh, with a population of about 170 million, is the second South Asian country after India with which South Korea has concluded a CEPA. It is also the largest market among the new free trade agreement partners Seoul has secured under its trade diversification strategy.

On goods market access, the two sides agreed to eliminate tariffs on key items. Duties on ramyun, prepared coffee products, seasoned dried seaweed and confectionery are set to be removed, improving market access for South Korean products.

Tariffs will also be eliminated on diesel — South Korea's top export to Bangladesh — as well as on major semi-knocked-down vehicle categories and all automotive parts. The agreement also secured tariff elimination on lubricant base oil and washing machines, categories Bangladesh had not previously opened under any free trade agreement.

Steel tariffs will be phased out, while duties on heavy construction equipment and machinery for agricultural and textile use will be removed immediately.

The ministry said it also established flexible rules of origin for key exports including petroleum and chemical products, steel, K-food and K-beauty goods, allowing South Korean companies to receive tariff benefits even when using some non-originating materials.

Beyond goods, the agreement secures market access in 90 promising service sectors, including e-learning, healthcare, telecommunications and construction.

The ministry added that the CEPA incorporates a broad cooperation framework spanning infrastructure, industry, textiles, halal, digital transformation, energy and resources, supply chains, and the clean economy.

The ministry plans to swiftly complete consultations on remaining technical matters and pursue the follow-up steps needed for the agreement's formal signing and entry into force.

"The South Korea-Bangladesh CEPA will serve as an institutional foundation connecting our companies to a promising market of 170 million people and expanding the bilateral relationship beyond trade in goods to comprehensive economic cooperation in areas such as infrastructure and industry," Yeo said. "We will push forward with the follow-up procedures without delay."


oskymoon@heraldcorp.com