Trade Scenario Between Bangladesh and South Korea

Trade Scenario Between Bangladesh and South Korea

Agreement between the Government of the People’s Republic of Bangladesh and the Government of the Republic of Korea on Trade and Economic Co-operation was signed on 01 July 1973. The main component of this agreement is “The two Contracting Parties shall promote economic co-operation in those fields which will contribute to the development of their economic and shall accord each other, in accordance with the laws and regulations of the Contracting Parties, necessary facilities no less favorable than those accorded to any third country in respect of capital investments including credit, joint ventures and other forms of economic co-operation”. Bangladesh continues to suffer from negative balance of trade with Korea. The Republic of Korea has been one of the most reliable development partners of Bangladesh and has been extending significant cooperation and support to Bangladesh since the early 1970s. It is one of the major trading partners of Bangladesh. There is a steady increase in bilateral trade between the two countries which currently stands at approximately USD 1.68  billion.  However, Bangladesh’s exports to the ROK is only USD 352.82 million and the trade balance is consistently in favor of the Republic of Korea. With its export heavily dependent upon garment and textile, Bangladesh has to import textile and related goods from Korea. Diversification of Bangladesh export item is much needed.  The Republic of Korea has expanded its duty-free, quota free (DFQF ) facilities for Bangladesh. As per the latest expansion, 4802 products have been accorded zero tariff facilities . The expansion of DFQF facility covers a good number of textile and footwear items in which Bangladesh enjoys comparative advantages. Bangladesh’s main exportable item to republic of Korea consists of Leather, Woven garments, Jute manufacturers, Pharmaceutical, Jute yarn and twine, other manufactured goods, Knitwear, Footwear ( leather & sport ), Stainless steel wares, Frozen fish, Cap, Copper wire, Raw jute. Major Imports items from Korea are Vegetable products, Live animals, Mineral products, plastic & Articles thereof, Textiles & Textile articles, Articles of stone, Machinery, & mechanical appliance, Vehicles, aircraft, Optical, Photographic, Footwear, Umbrellas, etc.  The balance of trade position between Bangladesh and Korea from 2009-2010 to 2022-2023  is shown below :       

Export and Import Statistics( Value in milliom US$)

  Source: EPB/ Bangladesh Bank

Top 20 Exported Item in South Korea for the year 2020-2021:

Total Export Amount: 398,665,717.99 USD