Bangladesh and South Korea have concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA) that will progressively eliminate Bangladesh's import tariffs on South Korean steel products, marking a significant shift in trade policy between the two nations. Under the terms of the agreement, Bangladesh will phase out its existing 5-10 percent import tariffs on South Korean hot rolled coil (HRC) and cold rolled coil (CRC) steel products. According to South Korea's Ministry of Trade, Industry and Energy, the deal is designed to enhance the price competitiveness of South Korean steel suppliers in the Bangladeshi market.
The timing of the agreement is strategically significant, as Bangladesh is undergoing rapid urbanization and industrialization, with substantial investment flows directed toward roads, railways, ports, airports and energy infrastructure. These infrastructure-heavy development programs are expected to generate sustained demand for flat steel products in the coming years. Beyond steel, the CEPA incorporates flexible rules of origin provisions covering steel, petroleum products, chemicals, electronics and machinery.
These provisions will allow qualifying South Korean goods manufactured using certain imported inputs to benefit from preferential tariff treatment, broadening the commercial scope of the agreement. Bangladesh has also agreed to immediately abolish its one percent tariffs on construction equipment, including excavators and bulldozers. The deal is expected to open doors for South Korean companies beyond direct product exports, creating opportunities in the design, construction and engineering of major Bangladeshi infrastructure projects.
South Korean steel exports to Bangladesh totaled approximately $5 million in 2025, according to data cited by SteelOrbis. Bilateral trade between the two countries reached $2.37 billion in 2025, representing a year-on-year increase of approximately 20 percent. Both governments are currently working to finalize outstanding technical details before the formal signing of the CEPA and the completion of their respective domestic ratification procedures.
Source: SteelOrbis
Source: steelorbis.com