Thailand, Bangladesh to launch formal FTA talks by year-end

Thailand and Bangladesh will formally launch free trade agreement (FTA) negotiations towards the end of this year, Commerce Minister Pichai Naripthaphan announced.

Proposal for FTA Talks Initiated by Thailand

Pichai stated that he had proposed to Faiyaz Murshid Kazi, the Bangladeshi Ambassador to Thailand, that Bangladesh host a meeting of the Thailand-Bangladesh Joint Trade Committee later this year. This meeting would mark the official start of the FTA negotiation process between the two nations.

The proposal was made during a meeting between the two at the Commerce Ministry on Thursday, 8 May.

Letter of Intent Signed for FTA Negotiations

During the discussion, both parties signed a letter of intent to begin negotiations on a free trade agreement. Pichai added that senior trade officials from both countries have been assigned to consult one another via online platforms to develop the framework for negotiations, which are set to begin later this year.

Thailand Supports Bangladesh's BIMSTEC Chairmanship

Pichai also expressed Thailand’s full support for Bangladesh’s upcoming chairmanship of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) for the 2025–2026 period.

He noted that Thailand backs Bangladesh’s efforts to advance BIMSTEC's FTA negotiations among member countries, in alignment with the Bangkok Declaration signed in April 2025.

Bangladesh: A Promising Export Market for Thailand

Highlighting the trade potential, Pichai noted that Bangladesh, with a population of 170 million and annual economic growth of 6%, presents a significant export market for Thailand.

He particularly emphasised Bangladesh's potential as a major halal food market, noting that it has the fourth-largest Muslim population in the world and relies heavily on imported goods.

Strong Trade Relations Between the Two Nations

Bangladesh is currently Thailand’s second-largest trading partner in South Asia. In 2024, the bilateral trade value between the two countries reached USD 1.13 billion, with Thailand exporting USD 1.04 billion worth of goods to Bangladesh.