Bangladesh Pushes for EU Trade Deal and RCEP Entry: Dual Negotiation Strategy Unveiled

Dhaka, August 9, 2026 — Bangladesh is simultaneously pursuing a free trade agreement (FTA) with the European Union and accession to the Regional Comprehensive Economic Partnership (RCEP) — marking the most ambitious trade negotiation strategy in the country's history as it races to secure market access before LDC graduation in November 2026.

🇪🇺 EU FTA: Formal Negotiations Begin After August

Commerce Minister Khandakar Abdul Muktadir confirmed that an initial exchange of formal letters with the EU has already taken place, agreeing to enter negotiations for a free trade agreement. "We are hopeful that we will get the date of engagement for the negotiation with the EU after August," Muktadir told The Daily Star.

An additional secretary from the Ministry of Commerce has been named Bangladesh's chief negotiator, while the EU has similarly appointed its lead trade representative. Formal steps for the EU trade negotiations are expected to begin next month.

📊 EU-Bangladesh Trade: Key Numbers

• 📈 EU share of Bangladesh trade: 21.5% (largest trading partner)
• 📈 Bilateral trade in goods (2025): €23.3 billion
• 📉 EU trade deficit (in BD's favour): €19.1 billion
• 📈 Textiles share of EU imports from BD: ~94%
• 📈 EBA duty-free benefits (2024): €19 billion (96% utilisation rate)
• 💰 EU FDI stock in Bangladesh: €2.5 billion
• 📈 Bangladesh was EU's 35th-largest trading partner (2025): 0.5% of total EU trade

Bangladesh is the largest beneficiary of the EU's Everything But Arms (EBA) arrangement — with €19 billion worth of exports benefiting from duty-free preferences in 2024 at a 96 percent utilisation rate. After LDC graduation, this preferential access will end, making the FTA negotiation critical for preserving market access to Bangladesh's largest export destination.

🌏 RCEP: Joining the $32 Trillion Economic Zone

Parallel to the European talks, Commerce Secretary Md Ataur Rahman Khan is currently visiting Australia and New Zealand to rally support for Bangladesh's accession to RCEP. The 15-nation free trade agreement comprises the ten ASEAN members alongside Australia, China, Japan, New Zealand, and South Korea — encompassing 30 percent of global GDP and representing a $32 trillion economic zone.

Muktadir expressed confidence in Bangladesh's prospects, noting that the country has satisfied foundational criteria and holds an advantage due to existing bilateral trade pacts with members Japan and South Korea. However, he did not specify when Bangladesh may gain RCEP accession.

🏛️ Why This Matters for LDC Graduation

The dual negotiation strategy is directly tied to Bangladesh's LDC graduation in November 2026. After graduation, Bangladesh will lose duty-free access to the EU (EBA), UK (DCTS), and several other preferential arrangements. Without replacement trade agreements, Bangladesh's exports — particularly RMG, which accounts for 94 percent of EU imports — would face significant tariff barriers that could erode competitiveness against Vietnam, Cambodia, and other apparel-exporting nations.

The Bangladesh-Korea CEPA (signed earlier in 2026) and the EPA with Japan represent the first steps in this trade agreement strategy. The EU FTA and RCEP accession would dramatically expand the coverage — securing preferential access to markets that collectively account for over 50 percent of Bangladesh's total trade.