Bangladesh-Chile trade push for free trade zone

Bangladesh's non-resident Ambassador to Chile, Md Tauhedul Islam, has presented his credentials to Chilean President Jose Antonio Kast. During the meeting, discussions focused on further strengthening bilateral relations and expanding economic and commercial cooperation between the two countries. Special emphasis was placed on the proposal to establish a free trade zone between Bangladesh and Chile.

The information regarding the recent presentation of credentials was shared in a press release on Wednesday (August 19). The release said that following the presentation of credentials, the Chilean President mentioned the meeting between Bangladesh's Foreign Minister Dr Khalilur Rahman and Chile's Foreign Minister in July. He called for swift progress on the initiative to establish a free trade zone to further expand economic ties between the two countries. Chilean Foreign Minister Francisco Perez Mackenna was also present at the meeting.

In response, Md Tauhedul Islam said Bangladesh is also interested in establishing a free trade zone. Necessary steps will be taken to advance this initiative. The Ambassador further said preparations are underway to hold the second annual consultation meeting between the foreign ministries of Bangladesh and Chile in Dhaka in October or November. This meeting will provide an opportunity to finalise various bilateral issues and potential agreements.

The meeting was informed that a possible agreement on establishing a free trade zone, along with several other mutually beneficial issues, could be signed during Chilean Foreign Minister Francisco Perez Mackenna's likely visit to Dhaka in January next year. Plans are also in place to bring a Chilean business delegation to Bangladesh alongside him to expand commercial ties.

In a separate meeting with the Chilean Foreign Minister, the expansion of trade was also emphasised. The Ambassador noted that bilateral trade between Bangladesh and Chile currently stands at approximately US$310 million. With an effective trade framework and a free trade zone, there is potential to increase this trade to several billion dollars in the future. Emphasis was placed on increasing trade in Bangladesh's ready-made garments, leather goods and pharmaceuticals, and Chile's copper and lithium, among other products.

Discussions also took place on increasing communication and delegation exchanges between the business and commercial organisations of the two countries. During the meeting, the Bangladeshi Ambassador recalled with gratitude Chile's recognition of independent Bangladesh on June 1, 1972. He also mentioned the historical and cultural connections between the two countries, noting that Chilean Nobel laureate poet Pablo Neruda had served as a diplomat in the region. Both sides expressed their commitment to further deepening and broadening Bangladesh-Chile relations in the future.