Bangladesh has launched a renewed policy initiative to explore a potential free trade agreement (FTA) or economic partnership agreement (EPA) with Australia, as part of its broader strategy to diversify export markets and reinforce its trade position ahead of graduating from least developed country (LDC) status.
The Ministry of Commerce convened a coordination meeting with senior officials and industry leaders to assess the country’s strategic priorities for future trade deals, with a particular focus on the proposed EPA with Australia. The session, chaired by the Commerce Secretary, brought together key representatives from export-oriented manufacturing sectors.
During the discussion, BGMEA Director Faisal Samad highlighted Bangladesh’s structural gap in the Australian apparel market, despite being the world’s second-largest garment exporter. He noted that China currently holds about 57% of Australia’s garment import market, whereas Bangladesh’s share stands at roughly 11%. He said addressing this imbalance would require a coordinated national approach rather than isolated private-sector efforts. He added that Bangladesh should aim to double its market share in the next decade through integrated government policy, active economic diplomacy and structured public–private engagement.
Participants observed that much of Bangladesh’s current market penetration in Australia has resulted from individual entrepreneurial initiatives. However, sustainable long-term growth would require a more coherent national framework. Officials suggested that the Ministry of Commerce, as the lead agency, could align its efforts with the Ministry of Foreign Affairs, the Export Promotion Bureau (EPB) and BGMEA to formulate a comprehensive market access and trade strategy.
Several strategic priorities were identified to strengthen Bangladesh’s competitiveness in Australia, including reinforcing backward-linkage industries to limit import dependency, diversifying cotton sourcing to mitigate supply risks, and accelerating the transition towards man-made fibre and wool-based product segments to meet changing Australian consumer preferences.
Industry representatives emphasised that future trade discussions with Australia should extend beyond tariff reduction to include cooperation on standards, sustainability compliance and supply chain transparency—areas that have become increasingly important for Australian retailers and brands.
The Commerce Ministry concluded that a series of follow-up meetings would be held to refine Bangladesh’s negotiating position on the proposed EPA. BGMEA is expected to present a detailed sector-specific roadmap at the next session, outlining opportunities for export scaling, product diversification and investment needs.
If advanced strategically, a Bangladesh–Australia FTA/EPA could enhance long-term export resilience, reduce reliance on traditional markets, and strengthen Bangladesh’s competitiveness in the post-LDC era.
