Dhaka, KL kick off FTA talks

Bangladesh-Malaysia kicked off a three-day formal negotiation on a Free Trade Agreement (FTA) to expand bilateral trade and investment and deepen economic partnership. 

The first round of talks began at a hotel in the capital and the two sides signed the Terms of Reference (ToR) at the opening session, outlining the framework and scope of the negotiations.

  Both sides expressed their determination to finalise a modern, balanced and mutually beneficial deal by 2027.  

Commerce Secretary Sharaf Uddin Ahmed Choudhury said Bangladesh-Malaysia ties have been strengthened by historical friendship and shared cultural and religious values.   

Although bilateral trade is encouraging, he said, the vast potential for investment and trade diversification remains largely untapped.  

He said Prime Minister Tarique Rahman and his Malaysian counterpart Anwar Ibrahim discussed concluding a sustainable and mutually beneficial FTA by 2027 during Tarique's visit to Malaysia in June. The first round of negotiations will continue until October 29.

"Today's first round of formal talks marks the start of the institutional process to deliver on that commitment," he added.  

The secretary said the FTA is crucial for Bangladesh to tackle the challenges of graduating from the least developed country (LDC) category and to maintain its competitiveness in global markets.  

As a meeting point of South and Southeast Asia, Bangladesh is a promising destination for Malaysian investors, he said, pointing to opportunities for joint investment in the halal industry, semiconductor skills development, digital trade, logistics and special economic zones.