Trade gap with Thailand tops $728 million as Bangladesh pushes pharmaceuticals and jute into the Thai market

Bangladesh's trade with Thailand is growing, but a large imbalance remains between imports and exports. Bangladesh imports huge volumes of goods from Thailand, while the presence of Bangladeshi products in the Thai market is comparatively small. To narrow the gap, the government is now placing special emphasis on increasing exports of pharmaceuticals, jute and jute goods to the Thai market.

According to statistics based on data from the Export Promotion Bureau (EPB), the National Board of Revenue (NBR) and Bangladesh Bank, Bangladesh exported goods worth $61.9 million to Thailand in the 2024-25 fiscal year. Imports from the country, by contrast, stood at $790.6 million. The trade deficit thus reached $728.7 million, with imports roughly 13 times the size of exports.

The picture in earlier years was similar. In 2023-24, Bangladesh's exports to Thailand were $64.2 million against imports of $871.5 million. In 2022-23, exports were $71.7 million while imports stood at $945.2 million.

In other words, although imports from Thailand have fallen over three years, Bangladesh's exports to that market have not grown — they have shrunk instead. The new initiative aims to reverse that trend.

To that end, Dhaka has proposed that Thailand increase its imports of Bangladeshi goods and reduce tariffs on those products. The proposal was placed at the fourth Foreign Office Consultation (FOC) meeting between the two countries, held in Bangkok last Friday. The meeting also discussed finding new areas of cooperation to expand bilateral trade and investment.

According to a foreign ministry statement, the Bangladesh delegation was led by Foreign Secretary Asad Alam Siam, while Thailand's side was led by Eksiri Pintaruchi, permanent secretary of the Thai foreign ministry. Thailand expressed interest in considering Bangladesh's proposals and increasing trade and investment. It also requested an early start to talks on a free trade agreement (FTA) between the two countries.

Pharmaceuticals and jute have been put at the front of the deficit-reduction effort because Bangladesh has export capacity in both sectors. But expanding the entry of these products into the Thai market requires easier conditions on import tariffs, quality control, registration and marketing, which is why Bangladesh has proposed tariff cuts alongside higher imports.

At the meeting, Bangladesh also sought Thai technical cooperation and investment in fruit and vegetable processing, and proposed technology exchange to capture the global halal food market. It further sought support from Thailand's International Cooperation Agency (TICA) to train Bangladeshi professionals in hospitality, nursing, agricultural germplasm and food processing.

Cooperation in the energy sector was discussed as well. Citing its target of generating at least 20 percent of electricity from renewable sources by 2030, Bangladesh expressed interest in using Thailand's experience in producing power from agricultural residues and agro-industrial waste.