South Korea and Bangladesh reach Cepa deal


South Korean Trade Minister Yeo Han-koo (left) shakes hands with Bangladeshi Commerce Minister Khandaker Abdul Muktadir. — The Korea Herald

SEOUL: South Korea and Bangladesh reach a preliminary agreement on a comprehensive economic partnership agreement (Cepa) that would cut tariffs on South Korean food, vehicles and industrial goods, while widening access to each country’s services and infrastructure markets.

Trade Minister Yeo Han-koo and Bangladeshi Commerce Minister Khandaker Abdul Muktadir announced the conclusion of negotiations in Dhaka.

The deal is South Korea’s second Cepa with a South Asian country after India.

“The South Korea-Bangladesh Cepa will connect South Korean companies with a promising market of 170 million people,” Yeo said.

Bangladesh will eliminate tariffs on South Korean instant noodles, coffee preparations, seasoned seaweed and snacks, which currently face duties of up to 85.6%.

It will also scrap a 6% tariff on diesel, South Korea’s largest export to Bangladesh, and remove duties on key semi-knocked-down vehicles and all auto parts. The ministry said South Korean finished vehicles will receive treatment no less favourable than those from other trading partners.

The two countries launched negotiations in November 2024 and held five formal rounds of talks.

They will now finalise technical details before signing the agreement and completing domestic procedures for it to take effect. — The Korea Herald/ANN

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