Bangladesh and South Korea have concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA), which will gradually eliminate Bangladesh's 5-10 percent import tariffs on South Korean hot rolled and cold rolled steel products.
According to South Korea's Ministry of Trade, Industry and Energy, the agreement will strengthen the price competitiveness of South Korean steel in Bangladesh, where demand is expected to increase amid accelerating urbanization, industrialization and investment in roads, railways, ports, airports and energy infrastructure.
The CEPA also provides flexible rules of origin for steel, petroleum products, chemicals, electronics and machinery, enabling qualifying South Korean goods produced using certain imported inputs to benefit from preferential tariffs. Bangladesh will additionally abolish its one percent tariffs on excavators, bulldozers and other construction machinery immediately.
The agreement is expected to expand opportunities for South Korean companies not only in steel and equipment exports but also in the design, construction and engineering of major Bangladeshi infrastructure projects. South Korean steel exports to Bangladesh totaled approximately $5 million in 2025.
Bilateral trade reached $2.37 billion in 2025, rising by around 20 percent year on year. The two countries will finalize the remaining technical details before formally signing the CEPA and completing their respective domestic ratification procedures.
