Bangladesh signed a Comprehensive Economic Partnership Agreement, or CEPA, with South Korea at the Ministry of Commerce on Tuesday. Under the agreement, 97 percent of Bangladeshi products will receive preferential tariff treatment in the South Korean market, while 87 percent of South Korean products exported to Bangladesh will receive the same benefit. Commerce Minister Khandaker Abdul Muktadir announced the details at a news briefing after the CEPA Negotiation Conclusion Ceremony.

Muktadir said this was Bangladesh’s first CEPA agreement within five months of the current government taking office. He said the deal would create new opportunities for duty-free access and other benefits for Bangladeshi exports including ready-made garments, leather and leather goods, jute and jute products. Bangladesh would also benefit when importing agricultural products, plastics and spare parts from South Korea, he said.

According to the Ministry of Commerce, bilateral trade currently totals about $1.39 billion, with Bangladesh running a deficit of about $411 million. South Korean Trade Minister Yeo Han-koo cited the need for more diversified trade and said the countries could work together in technology and supply-chain management. He expressed hope that the agreement would encourage Korean companies to invest in Bangladesh in a more accessible and favorable environment.