Bangladesh and South Korea have completed negotiations on the Comprehensive Economic Partnership Agreement (CEPA), which will gradually eliminate Bangladesh's 5-10% import duties on South Korean hot-rolled and cold-rolled steel products.
According to the South Korean Ministry of Agriculture. In the areas of trade, industry and energy, the agreement will strengthen the price competitiveness of South Korean steel in Bangladesh, where demand is expected to increase. Growth comes amid accelerating urbanization, industrialization, and investments in roads, railways, ports, airports, and energy infrastructure.
CEPA also provides flexible rules for determining the origin of steel, petroleum products, chemicals, electronics and machinery, which allows South Korean goods produced using certain imported materials to benefit from preferential tariffs. Bangladesh will additionally cancel its one percent tariffs on excavators, bulldozers and other construction equipment immediately.
The agreement is expected to expand the capabilities of South Korean companies not only in the export of steel and equipment, but also in the design, construction and engineering of large infrastructure projects in Bangladesh. The total volume of South Korean steel exports to Bangladesh was about $5 million by 2025.
In 2025, the volume of bilateral trade reached $2.37 billion, an increase of about 20% year-on-year. The two countries will finalize the remaining technical details before formally signing the agreement and completing the relevant internal ratification procedures.
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