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Thailand and Bangladesh to Begin Free Trade Agreement Talks

Thailand and Bangladesh to Begin Free Trade Agreement Talks

04/29/2024
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Thailand and Bangladesh to Begin Free Trade Agreement Talks

by Geraldine S.
04/29/2024
in Global Trade, Trade Agreements

Thailand and Bangladesh are set to initiate discussions on establishing their first free trade agreement (FTA) by the end of this year, as announced by Thailand’s Deputy Prime Minister and Commerce Minister Phumtham Wechayachai. The announcement followed the recent signing of a letter of intent between Minister Phumtham and his Bangladeshi counterpart, Ahasanul Islam Titu, which marks a mutual interest in expanding trade and investment relations between the two nations. Bangladesh, a significant market with a population of approximately 172 million and an average annual economic growth rate of 6%, is seen by Thailand as a key strategic partner in South Asia. This partnership aims to enhance Thailand’s trade connections not only within South Asia but also extending to the Middle East and Africa. Bangladesh’s robust market size, labor force, and other resources are considered vital components in supporting Thailand’s regional trade expansion.

The economic relationship between the two countries has already seen substantial Thai investment in sectors such as food, construction, and hospitality within Bangladesh. Additionally, Bangladesh is looking to increase imports from Thailand, including essential food products like sugar, vegetable oil, and beans, to bolster its food security. In terms of trade volumes, the past year saw Thailand and Bangladesh reach a total trade value of $1.18 billion. Thai exports to Bangladesh, including commodities like oil, cement, plastic pellets, synthetic fibers, and fabrics, accounted for $1.09 billion of this total, highlighting the growing economic ties between the two nations.

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