FTA feasibility study may end before Hasina’s China visit: State Minister Titu

Her office said she would travel to China in July

A feasibility study on a potential Free Trade Agreement between Bangladesh and China may be completed before Sheikh Hasina’s visit to the Asian giant, State Minister for Commerce Ahasanul Islam Titu has said.

The two countries signed a Memorandum of Understanding on the study in 2016 and held a joint meeting in 2018, according to him.

“We’ve already exchanged reports of the study. Hopefully, we’ll be able to announce the end of the study just before the prime minister’s visit, and start formal negotiations by the end of this year,” he said at a seminar on Sunday.

The Prime Minister’s Office had earlier said she would travel to China in July after visiting India.

The event titled “China Bangladesh Free Trade Agreement: A Mutually Beneficial and Win-Win Choice” was organised by the Chinese Embassy in Dhaka.

Yao Wen, the Chinese ambassador in Dhaka, said there was “no doubt” that the FTA will ring in a “golden era” of economic and trade cooperation.

He said China has been the largest trade partner of Bangladesh for 13 years, with the trade reaching $24 billion in 2023.

China’s direct investment in Bangladesh last year was $3.2 billion.

Wen hoped the two countries would be able to complete the FTA negotiation by 2026.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development, said both countries would benefit from an FTA, but Bangladesh would be under “a bit of” pressure because of its dependence on import duty for revenue collection.

But, if Chinese investment increases after the FTA, a path out of the pressure may be created through diversification of export, he added.

Citing their own research, Razzaque said, the size of Bangladesh’s economy may grow by 2-4 percent once the FTA is signed.