Govt conducts feasibility study for FTA with Thailand

Bangladesh's plans of signing a free trade agreement (FTA) with Thailand has turned more plausible with a feasibility study conducted by the Bangladesh Trade and Tariff Commission.

"We have also held meetings with the stakeholders to know their opinion...However, signing an FTA is still at a preliminary stage," said Mahbubul Haque, additional secretary (FTA wing) to the commerce ministry.

Bangladesh exported goods worth $35.45 million in fiscal 2019-20 while imports amounted to $801.57 million, according to the Export Promotion Bureau and Bangladesh Bank.

In 2001-02, it was $21.58 million and $158.90 million respectively.

Major exports in fiscal 2019-20 include garments, optical, precision and surgical instruments; oil seeds and oleaginous fruits, grains, seeds and fruit, copper, leather goods, fish and crustaceans, rubber and pharmaceutical products.

The imports primarily comprise salt, sulphur, earth and stone, base metals, plastering materials, lime and cement, plastics and rubber articles, products of chemical or allied industries, boilers, machinery and mechanical appliances; mineral fuels, prepared foodstuffs, beverages, spirits and vinegar and man-made fibres.

Currently, Bangladesh enjoys duty benefit on export of some goods to Thailand under the least developed country (LDC) category.

However, the preferential trade benefit to Thailand will come to an end in 2026 with the LDC graduation.

Haque said the commerce ministry has been negotiating with many countries like India, Indonesia, Japan, Thailand and some other East Asian nations to sign FTAs, preferential trade agreements (PTAs) or comprehensive economic partnership agreements (CEPAs).

This is to continue availing duty waivers even after Bangladesh make the United Nations status graduation from an LDC to a developing county in 2026, he said.

So far, only one PTA has been signed with Bhutan in December last year.