Bangladesh is in a hurry to sign trade agreements before it leaves the LDC category, scheduled for November 24. The rush is understandable. Losing preferential access could affect nearly half of the export basket, as trade economist Dr Mohammad Abdur Razzaque has warned, and he is right that “an EU arrangement is critical.”
The progress is real. An Economic Partnership Agreement with Japan was signed in February. A CEPA with South Korea is negotiated and awaiting cabinet approval. Talks with Singapore, Malaysia, the UAE and the EU are moving, and 38 feasibility studies have been completed.
But a signed agreement only opens the door; it does not make exporters competitive. Former DCCI president Abul Kasem Khan put it plainly: “trade agreements cannot replace structural reform.” Lower tariffs abroad matter less if factories face unreliable energy, slow ports and customs, expensive finance from a weak banking sector, and a shortage of skilled workers.
The US example is a warning. Under the reciprocal trade agreement signed in February, Bangladeshi goods face a 19% tariff, and average garment tariffs are about 25.62%. Exports to the US still grew 4.09% in FY26 to $9.05 billion — but competitors such as Cambodia, Indonesia and Malaysia are negotiating hard for the same buyers.
The government should pair every trade negotiation with a domestic delivery plan: energy supply for export zones, port and customs timelines, and a skills programme tied to the higher-value products the new agreements are supposed to unlock. Otherwise Bangladesh risks winning market access it cannot fully use.
The views in this opinion piece are those of the Policy Forums editorial team.
Related reading: Bangladesh accelerates trade deals ahead of LDC exit — TU News
