NEW DELHI: Bangladesh is stepping up efforts to expand its global trade footprint, preparing to launch formal negotiations for a Free Trade Agreement (FTA) with the European Union while continuing its bid to join the Regional Comprehensive Economic Partnership (RCEP).

According to reports, formal discussions with the EU are expected to begin next month. Bangladesh has already exchanged initial formal letters with the bloc expressing its intention to negotiate an FTA, while both sides have appointed chief negotiators.

The move comes as Bangladesh prepares for the economic challenges associated with its graduation from the Least Developed Country (LDC) category. Dhaka is seeking stronger and more predictable market access to protect its exports and attract investment.

The European Union is Bangladesh's largest trading partner. Bilateral trade in goods reached around €23.3 billion in 2025, with Bangladesh recording a trade surplus of approximately €19.1 billion. Textiles and garments dominate Bangladesh's exports to the EU, accounting for nearly 94% of shipments last year.

At the same time, Bangladesh is seeking support from RCEP members for its entry into the Asia-Pacific trade bloc. The country has also recently strengthened its trade links with major Asian economies, including South Korea and Japan.

Dhaka's simultaneous push towards an EU FTA and RCEP membership reflects a broader strategy to diversify export markets, strengthen economic partnerships and reduce the impact of losing preferential trade benefits following LDC graduation.