Bangladesh seeks NZ backing for RCEP, LDC extension and FTA

The proposals were made at a high-level policy meeting held at the headquarters of New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) in Wellington today, aimed at further strengthening and diversifying Bangladesh-New Zealand trade and diplomatic relations.

New Zealand’s Trade Negotiations and Policy Division were represented by Division Manager Sara Meymand and Unit Manager Jonas Holland.

Bangladesh’s delegation was led by Commerce Secretary Md Ataur Rahman Khan and included officials concerned with the Foreign Trade Agreement (FTA) Wing of the Ministry of Commerce and Counsellor at the Bangladesh High Commission in Wellington Ishtiaq Ahmed.

At the outset, the Bangladesh delegation conveyed greetings from the government and the Commerce Minister to the New Zealand officials and appreciated New Zealand’s active and constructive role in global trade and economic diplomacy, said a ministry press release.

The delegation also presented a specific roadmap for transforming the existing commercial ties between the two countries into a more effective and long-term partnership.

A major focus of the meeting was Bangladesh’s proposed membership of the RCEP.

Bangladesh informed the New Zealand side that it had already submitted detailed responses to the questionnaires required for RCEP membership and was undertaking reforms to align relevant institutional and regulatory frameworks with the agreement’s high-standard trade disciplines.

The reforms include initiatives to reduce tariffs on industrial raw materials and high-tech machinery, shift the telecommunications, financial services and logistics sectors from a ‘positive list’ to a ‘negative list’ approach, and formulate modern laws and policies relating to competition, patents, copyrights and data protection.

Highlighting New Zealand’s policy influence as one of the founding members and an important member of RCEP, Bangladesh sought its active support for Bangladesh’s membership.

Bangladesh also proposed allowing 15 to 20 years of phased tariff flexibility to protect sensitive products and industrial sectors under RCEP, similar to provisions available to LDC members of ASEAN.

The Bangladesh delegation also explained in detail the need for additional time in the country’s LDC graduation process.

It sought New Zealand’s support for Bangladesh’s request to extend the transition period until November 2029 instead of the previously scheduled 2026 timeline, citing various global and domestic realities.

The delegation said the Russia-Ukraine war, ongoing conflicts in the Middle East, rising international energy prices and global inflation had created significant pressure on developing economies and countries undergoing graduation processes.

It also highlighted Bangladesh’s ongoing socio-economic transformation following the 2024 mass uprising, efforts to stabilise foreign exchange reserves, and the need for administrative and institutional reforms.

Bangladesh stressed that it had no intention of delaying LDC graduation indefinitely. Rather, it wants to use the additional time to implement a sustainable and well-organised national preparation process and build a stronger foundation for the post-graduation economy.

In this context, Bangladesh sought New Zealand’s support for its position at the upcoming session of the United Nations General Assembly.

The proposed comprehensive bilateral FTA between Bangladesh and New Zealand also received significant attention at the meeting.

Bangladesh informed the New Zealand side of its decision to formally initiate FTA negotiations, following discussions between the commerce ministers of the two countries ahead of the 14th WTO Ministerial Conference (MC14).

If implemented, the proposed FTA would create opportunities for New Zealand to expand its market for dairy products, agricultural machinery and metal products in Bangladesh’s huge consumer market of around 170 million people.

For Bangladesh, the agreement would provide more stable and predictable access to the New Zealand market for garments, pharmaceuticals, leather goods and information technology products after LDC graduation.

The Bangladesh side said a balanced and mutually beneficial FTA could elevate bilateral trade to a new strategic level.

At the concluding stage of the meeting, Bangladesh put forward three specific proposals to make future trade cooperation more dynamic and institutionalised.

First, it proposed establishing an annual Bilateral Trade Policy Consultative Group to regularly review post-LDC market access and commercial interests under RCEP.

Second, it proposed forming a Joint Working Group between the two countries as the first step towards FTA negotiations.
Third, it proposed strengthening diplomatic coordination between the permanent missions of Bangladesh and New Zealand in New York to secure support for Bangladesh’s request for additional time for LDC graduation at the upcoming UN General Assembly session.

The Bangladesh delegation expressed the hope that implementation of the proposed initiatives would give a new dimension to Bangladesh-New Zealand relations not only in trade but also in economic diplomacy, investment, market expansion and multilateral cooperation.

Both sides stressed the importance of maintaining regular communication and high-level policy dialogue on matters of mutual interest.

To this end, the Bangladesh delegation invited a policy-level delegation from New Zealand to visit Bangladesh soon, and the New Zealand authorities expressed a positive response to the invitation, reports BSS.