Thailand seeks free trade agreement with Bangladesh to bridge trade deficit

TBM Report

Thailand has expressed a keen interest in deepening economic engagement and trade ties with Bangladesh, capitalizing on the country’s accelerating economic growth, an expanding middle-class consumer base, and a strong demographic dividend. Speaking at the inauguration of the “Top Thai Brands 2026” exhibition at the Pan Pacific Sonargaon Hotel on Thursday, Thailand–Bangladesh Business Council (TBBC) Chairman Yongyos Pholtanawat Gary highlighted that signing a bilateral Free Trade Agreement (FTA) could significantly narrow Bangladesh’s existing trade imbalance with Thailand. Currently, Thai exports to Bangladesh stand at approximately USD 1.00 billion, whereas Bangladesh’s exports to Thailand linger at merely USD 100 million.

Inaugurating the three-day international trade showcase, Bangladesh Commerce Minister Khandakar Abdul Muktadir stressed the importance of international trade fairs in forging direct connections between global manufacturers, importers, distributors, and local entrepreneurs. Shams Mahmud, President of the Bangladesh-Thai Chamber of Commerce & Industry (BTCCI), confirmed that Dhaka is set to initiate formal discussions regarding the proposed FTA. Mahmud underscored lucrative trade prospects in pharmaceuticals, jute products, leather, hospitality, and agro-processing, while urging the establishment of direct shipping routes between Thailand’s Ranong Port and Bangladesh’s Chattogram Port to resolve existing logistics bottlenecks.

Beyond trade in goods, Thailand is eyeing joint ventures in Bangladesh’s healthcare sector, including the establishment of hospitals and nursing institutes to upgrade local medical infrastructure. Furthermore, Thai business representatives noted that upcoming mega-projects and rubber plantations in Thailand will generate substantial demand for skilled Bangladeshi migrant workers. Both sides expressed optimism that proactive collaboration between their respective commerce ministries will accelerate the implementation of the proposed FTA.

Organized by the Department of International Trade Promotion (DITP) under the Royal Thai Government, the exhibition features 57 leading Thai companies showcasing diverse products ranging from processed foods to healthcare items. Running through July 25, 2026, the event also hosts business-to-business matchmaking sessions alongside rich Thai cultural performances, Muay Thai displays, and fashion shows to foster long-term commercial and cultural synergy.