Bangladesh-Malaysia Free Trade Talks Begin in Dhaka, Targeting a Deal by 2027

Formal talks have begun in Dhaka on a free trade agreement (FTA) between Bangladesh and Malaysia. The first round began with a target of finalising the agreement by 2027. Bilateral trade between the two countries was about $2.84 billion in 2025.

The three-day first round began on Tuesday at the Pan Pacific Sonargaon hotel in the capital. Commerce Secretary Sharaf Uddin Ahmed Chowdhury inaugurated it. Representatives of the two countries signed a Terms of Reference (TOR) to set the scope of the talks. The first round will run until 29 October.

Malaysia's 31-member delegation is led by its chief negotiator, Dr Rashidi Said. Bangladesh is led by Khadiza Naznin, additional secretary of the Commerce Ministry and chief negotiator.

Commerce Secretary Sharaf Uddin Ahmed Chowdhury said existing trade relations between the two countries were promising, but the potential for investment and trade diversification had not been fully used. A completed free trade agreement would help use that opportunity, he said.

The commerce secretary said that after Bangladesh graduates from the list of least developed countries (LDCs), maintaining competitiveness in international markets will become important. An FTA could play a role in entering new markets and expanding trade, he said.

As possible areas for the agreement, the commerce secretary raised the halal industry, skills development in the semiconductor sector, digital trade, logistics and joint investment in special economic zones. Increased cooperation in those areas could make the two countries' commercial relationship more diverse, he said.

Malaysia's chief negotiator, Dr Rashidi Said, said the proposed agreement was not only about reducing tariffs; it was an initiative to build a long-term and balanced economic partnership between the two countries. He was optimistic about finishing the talks by 2027 through mutual understanding and a realistic work plan.

Bangladesh's chief negotiator, Khadiza Naznin, said that if the agreement takes effect, market access in both countries will become easier, trade barriers will fall, and new opportunities for investment and employment may be created.

At the talks, representatives of both countries reaffirmed a commitment to reach a balanced, effective and long-term agreement based on constructive dialogue, mutual respect and flexibility. Protecting both countries' interests on goods and services trade, rules of origin and customs procedures, among other issues, is being emphasised.