Bangladesh is going to sign Free Trade Agreement (FTA) with Singapore. LDC is going to sign FTA with Singapore as part of tackling potential challenges after graduation. The formalities of signing the agreement have already started.
On Sunday (November 10), the signing ceremony of the agreement was announced through a ceremony organized in the Ministry of Commerce meeting room at the Secretariat. Trade advisor Dr. was present as the chief guest in the event. Saleuddin Ahmed.
In the event, the Ministry of Commerce informed that Bangladesh will be promoted from a less developed country to a developing country in 2026. This achievement will create a positive image of Bangladesh in the world and create new opportunities for investment and trade as well as create several challenges. One of which is the loss of duty-free quota-free access when exporting goods to developed and developing countries as a self-developed country.
As a result, the export products of Bangladesh will have to face the normally levied duties while entering the markets of those countries. As a result, there is a possibility of shrinking Bangladesh’s export market in those countries, said the Ministry of Commerce.
The Ministry of Commerce also said that the government has taken various plans to deal with the possible challenges after the LDC graduation in Bangladesh. In the meantime, one of the initiatives to preserve and expand Bangladesh’s export market is to enter into regional trade agreements with various commercially important countries and trade blocs.
Singapore is the 32nd largest economy in the world and is an important trading partner of Bangladesh. Singapore is one of the commercial centers of the world. Singapore is a trade potential area for Bangladesh trade expansion. In addition to products, there is also the possibility of developing Bangladesh’s relations with Singapore in the service and investment sectors.
In this context, with the aim of increasing trade and investment between Bangladesh and Singapore, initiatives have been taken to sign FTA between the two countries. As part of this initiative, Singapore and Bangladesh have conducted feasibility studies on their own behalf. In continuation of this, today both countries gave the official announcement of the start of negotiations.
Trade advisor in the joint announcement. Salehuddin Ahmed, Special Envoy for Foreign Affairs of Chief Adviser Lutfe Siddiqui, Executive Chairman of Bangladesh Investment Development Authority Chowdhury Ashiq Mahmud Bin Haroon, Secretary of Ministry of Commerce Moha. Salim Uddin, Singapore High Commissioner to Bangladesh Derek Lowe, and visiting Singaporean delegation and senior officials from the Ministry of Commerce were present.
In response to a question from journalists, the trade advisor said, we will sign FTA with as many countries as possible. We are trying to go to ASEAN. Singapore will help in this regard.
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How will the Free Trade Agreement influence foreign investment in Bangladesh?
Interview Between Time.News Editor and Trade Expert on Bangladesh-Singapore FTA
Time.News Editor (TNE): Welcome, Dr. Saleuddin Ahmed, a renowned trade advisor and expert in international economics. We are thrilled to have you with us today to discuss an important development for Bangladesh—the impending Free Trade Agreement with Singapore.
Dr. Saleuddin Ahmed (DSA): Thank you for having me. It’s a pleasure to discuss this vital step for Bangladesh’s economic future.
TNE: To kick things off, could you explain the significance of this Free Trade Agreement (FTA) for Bangladesh, especially in the context of its upcoming graduation from LDC status?
DSA: Absolutely. Bangladesh’s transition from a least developed country (LDC) to a developing country in 2026 marks a considerable milestone. However, this transition comes with challenges, particularly the potential loss of duty-free and quota-free access for our exports to developed nations. The FTA with Singapore is strategic; it helps us create a robust trading relationship that could offset some of these challenges by opening new avenues for our exports.
TNE: Interesting! How exactly will this FTA benefit the trade landscape for Bangladesh?
DSA: Singapore is not only the 32nd largest economy globally, it’s also a pivotal commercial hub in Southeast Asia. By establishing an FTA, Bangladesh can enhance its export capabilities, tapping into Singapore’s advanced market. This partnership encourages trade not only in goods but also in services and investments, fostering a more diversified economic environment.
TNE: You mentioned potential challenges in maintaining export levels post-LDC graduation. How does the FTA address those challenges specifically?
DSA: The FTA serves as a mechanism to secure preferential trading terms that would help maintain our competitive edge. By negotiating zero or reduced tariffs on key exports, we’re able to minimize the impact of graduating LDC status. Moreover, it establishes frameworks for other sectors, including investments, which is crucial for sustaining economic growth.
TNE: What are some specific sectors or products that you believe will benefit most from this agreement?
DSA: Textiles and garments continue to be our mainstay, but we are also looking at agricultural products, IT services, and pharmaceuticals as areas with significant growth potential. The FTA can potentially open doors for Bangladeshi products, enhancing visibility and penetration in the Singaporean market.
TNE: How is Bangladesh preparing for the operationalization of this agreement?
DSA: Various feasibility studies and consultations have been undertaken to identify mutual interests. The Ministry of Commerce is actively developing strategies to engage stakeholders across sectors. This includes everything from regulatory adjustments to infrastructure improvements to facilitate smoother trade flows.
TNE: Beyond trade, are there additional areas where you see Bangladeshi and Singaporean relations flourishing as a result of the FTA?
DSA: Definitely. There’s immense potential in the service sector, especially with financial services and technology transfer. Singapore’s robust financial system and advanced technology can be particularly beneficial for Bangladesh, aiding in our objective to modernize and enhance efficiency in various industries.
TNE: As we close, what message would you like to convey to stakeholders and businesses on both sides regarding the FTA with Singapore?
DSA: This FTA represents more than a trade agreement; it’s a partnership based on mutual growth and shared interests. Businesses in Bangladesh should focus on understanding the new market dynamics and embrace innovation, while their Singaporean counterparts should recognize the untapped potential in Bangladesh. Both sides stand to gain significantly if they approach this agreement with an open and cooperative mindset.
TNE: Thank you, Dr. Ahmed, for your insights on this pivotal agreement. It’s clear that while the challenges are significant, the potential for economic growth and collaboration is equally promising.
DSA: Thank you for having me. I look forward to seeing how this partnership unfolds in the coming years!