Bangladesh-Thailand trade deficit concerns have prompted Dhaka to urge Thailand to import more Bangladeshi pharmaceuticals and jute products, while also seeking lower duties on its goods to improve their competitiveness in the Thai market.
The proposals were made during the fourth Foreign Office Consultations between the two countries in Bangkok on October 30. Bangladesh Foreign Secretary Asad Alam Siam led the Bangladeshi delegation, while Thailand’s Foreign Ministry Permanent Secretary, Eksiri Pintaruchi, headed the Thai side.
The discussions covered trade and investment, connectivity, labour migration, energy, agriculture, education, defence and climate change. Thailand expressed willingness to consider Bangladesh’s proposals and called for early discussions on a bilateral free trade agreement.
The consultations reflect Dhaka’s efforts to expand its export markets and reduce the trade imbalance with Thailand through greater market access, improved transport links and closer economic cooperation.
Bangladesh-Thailand Trade Deficit and Dhaka’s Export Strategy
Bangladesh proposed that Thailand increase imports of Bangladeshi pharmaceutical products and jute goods, two sectors in which the country has established export capacity.
Dhaka also called for reductions in duties on Bangladeshi products entering the Thai market. Lower tariffs could make these goods more competitive against products from other suppliers and help expand their presence in Thailand.
The proposals form part of a broader effort to reduce the bilateral trade gap by increasing Bangladesh’s exports rather than relying solely on imports or investment flows.
Thailand expressed willingness to consider the proposals and expand bilateral trade and investment. The two sides also reaffirmed their commitment to strengthening relations through cooperation at bilateral, regional and international levels.
The discussions did not produce a confirmed agreement on tariff reductions or additional pharmaceutical and jute imports. Instead, they established areas for further consideration as both countries seek to expand economic ties.
For Bangladesh, the outcome will depend on whether Thailand’s willingness to consider the proposals leads to practical improvements in market access and trade volumes.
Bangladesh-Thailand Free Trade Agreement Discussions
Thailand also called for the early initiation of discussions on a bilateral free trade agreement (FTA), which could provide a framework for expanding trade and investment between the two countries.
An agreement could address tariffs and other barriers affecting goods traded between Bangladesh and Thailand. However, the consultations did not establish a timeline for negotiations or confirm that a formal agreement had been reached.
The proposal comes as Bangladesh seeks to strengthen its economic relationships with Southeast Asian countries and improve access to regional markets. Thailand, meanwhile, has expressed interest in expanding commercial cooperation with Bangladesh.
The two sides also reviewed existing memoranda of understanding under discussion, including agreements related to rice imports and workers’ migration. Both governments expressed satisfaction with ongoing energy cooperation.
The proposed FTA discussions could provide an opportunity to address trade barriers more systematically, although their eventual impact would depend on the terms negotiated and the extent to which businesses in both countries could take advantage of improved market access.
Chittagong-Ranong Shipping Service to Reduce Transport Costs
Improved connectivity was another key issue during the consultations. Both sides welcomed the commencement of the first direct shipping service between Chittagong and Ranong ports in September 2026.
The service is expected to reduce transportation time between the two ports from approximately 15 days to four days, lowering logistics costs and supporting the expansion of bilateral trade.
The new shipping connection could be particularly significant for Bangladeshi exporters seeking to increase sales in Thailand. Shorter transit times may improve the competitiveness of goods that require reliable and timely delivery, while reduced logistics costs could make smaller shipments more commercially viable.
The shipping service also provides an opportunity to strengthen trade links between Bangladesh and Thailand by improving access to each other’s markets.
However, the extent of its contribution to reducing the Bangladesh-Thailand trade deficit will depend on the volume of goods transported and the ability of exporters to expand sales in the Thai market.
The new connection is therefore an important part of the wider effort to improve commercial ties, alongside tariff discussions and cooperation in investment and production.
Bangladesh Seeks Thai Investment and Technical Cooperation
Bangladesh also sought Thailand’s technical cooperation and investment in processing Bangladeshi fruits and vegetables. Dhaka further requested technology transfer to help develop its capacity to participate in the global halal food market.
The discussions included training opportunities under the Thailand International Cooperation Agency programme. Bangladesh sought professional training in hospitality, nursing, germplasm and food processing.
Thailand also offered to share its experience of the One Village One Product programme, which promotes the development and marketing of locally produced goods.
The cooperation could support Bangladesh’s efforts to improve the quality and competitiveness of its agricultural and food-processing sectors. Greater processing capacity and access to technology may also help exporters move towards higher-value products.
The consultations further covered renewable energy, with Bangladesh seeking Thai expertise in converting agricultural residues and agro-industrial waste into electricity. The request was linked to Bangladesh’s national objective of generating at least 20 per cent of its electricity from renewable sources by 2030.
These areas of cooperation show that the two countries are seeking to expand their relationship beyond the exchange of goods, with investment, technical assistance and professional training also forming part of the agenda.
Wider Regional Cooperation and Future Relations
The consultations also addressed regional and multilateral issues, including Bangladesh’s aspiration to become an ASEAN Sectoral Dialogue Partner and its interest in acceding to the Regional Comprehensive Economic Partnership.
Bangladesh appreciated Thailand’s continued support for these objectives. The discussions also covered the repatriation of displaced Rohingya people to Myanmar’s Rakhine State, with Dhaka seeking Thailand’s assistance on the issue.
Both sides acknowledged the growing threat posed by cross-border crimes, including human and arms trafficking, online scams and narcotics trade. They agreed to work together and consider establishing a joint committee under their respective ministries of home affairs.
The two countries are also preparing for the 55th anniversary of the establishment of diplomatic relations in 2027. Both sides expressed hope that visits by their heads of government next year could mark the occasion.
The consultations demonstrate that Bangladesh and Thailand are seeking to strengthen cooperation across a wide range of issues. For Dhaka, however, the immediate economic priority remains improving access to the Thai market and expanding exports.
Whether the proposals lead to a narrower trade gap will depend on the implementation of tariff changes, the progress of FTA discussions and the ability of Bangladeshi exporters to take advantage of improved transport links and commercial opportunities.
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