The Financial Express | 18 March 2026
Dhaka, Delhi move to fast-track CEPA talks
by REZAUL KARIM
Bangladesh and India accelerate negotiations to conclude a comprehensive economic deal aimed at strengthening bilateral trade, lowering tariff-and non-tariff barriers, attracting investment and deepening economic integration, sources say.
As envisaged, the proposed Comprehensive Economic Partnership Agreement (CEPA) also aims to help Bangladesh maintain smooth trade access to the Indian market at the next door after its graduation from the least- developed country (LDC) status, while creating new opportunities for businesses, supply chains and economic cooperation in areas such as services, technology, and infrastructure.Bangladesh is currently scheduled to graduate from the LDC category in 2026, although the government has sought a three-year postponement of its graduation.
Officials involved with the talks say the CEPA framework is designed to go beyond a conventional free-trade agreement by covering trade in services, investment facilitation and regulatory cooperation alongside tariff reductions.
Under the proposed arrangement, Bangladesh hopes to secure improved access for sectors such as ready-made garments, pharmaceuticals and agricultural products to the Indian market, while also attracting greater Indian investment into its special economic zones.
The two countries first discussed the possibility of signing CEPA in 2018 at the commerce secretary-level meeting for increasing bilateral trade and strengthening overall cooperation.
In the same year, the trade ministers had agreed to conduct a joint feasibility study on deal-making.
The Centre for Regional Trade of India and Bangladesh Foreign Trade Institute (BFTI) later jointly conducted the feasibility study and submitted report to the Ministry of Commerce.
After reviewing the joint-study report, the MoC opined that the CEPA deal could be signed with India to retain the facilities that Bangladesh enjoys under the South Asian Free -Trade Area (SAFTA) deal in the post-graduation era too.
Trade economists note that non-tariff barriers and logistical bottlenecks at key land ports -- particularly the busy corridor linking Benapole in Bangladesh with Petrapole in India -- remain a major constraint on bilateral commerce despite geographical proximity.
Momentum for the negotiations was reaffirmed earlier this month when Indian High Commissioner in Bangladesh Pranay Verma met Commerce Minister Khandaker Abdul Muktadir in Dhaka.
According to officials familiar with the discussions, both sides agreed to "accelerate technical consultations in order to conclude the agreement at the earliest possible time".
Negotiators, however, still need to resolve several complex issues before the deal can be finalised.
A sticking point involves rules-of-origin requirements, anti-dumping measures affecting certain Bangladeshi exports and the harmonisation of regulatory standards.
Both neighbouring governments are also examining ways to expand border-trade facilities and improve multimodal connectivity -- including rail and inland waterways -- to support higher trade volumes under the proposed agreement.
With Bangladesh's LDC graduation reshaping its external trade outlook, policymakers increasingly view the CEPA with India not merely as a tariff-cutting arrangement but as a broader strategic framework for regional economic cooperation. Contacted, a senior official of the ministry said: "We hope to start negotiations within the next couple of months." The Indian side is, however, taking preparation in this regard, he added.
