Bangladesh and South Korea have signed a Comprehensive Economic Partnership Agreement (CEPA), under which 97% of Bangladeshi products will receive preferential tariff benefits in the South Korean market.In return, 87% of South Korean products exported to Bangladesh will also receive similar tariff advantages under the agreement.The CEPA was signed between the two countries at the Ministry of Commerce on Tuesday. The details were disclosed by Commerce Minister Khondkar Abdul Muktadir at a press briefing following the “CEPA Negotiation Conclusion Ceremony”.The commerce minister said Bangladesh has been able to sign the agreement with one of the world’s major economies within a short period of time. He said it was the first CEPA agreement signed during the five months of the current government’s tenure.He said the agreement would create new opportunities for Bangladeshi exports, including readymade garments, leather and leather products, jute and jute-based goods, by providing improved market access in South Korea."South Korea has an economy worth nearly $2 trillion. A stronger trade partnership with the country will create significant opportunities for Bangladesh," Muktadir said.He added that Bangladesh would also benefit from imports of agricultural products, plastics and spare parts from South Korea.The minister said Bangladesh aims to become a $1 trillion economy by 2034 and needs to raise annual economic growth to 8% to achieve the target. Attracting foreign investment through bilateral trade agreements like CEPA would help expand investment opportunities, he added.South Korean Trade Minister Yeo Han-koo said the two countries have maintained a long-standing economic relationship. He noted that bilateral trade began 56 years ago through the textile sector."Global trade is moving towards product diversification. Therefore, both countries need to engage in more diversified exports and imports," he said.Yeo expressed hope that South Korea's companies would find a more favourable investment environment in Bangladesh following the agreement. He also said the two countries could work together in technology and supply chain management.According to the Ministry of Commerce, the current bilateral trade volume between Bangladesh and South Korea stands at around $1.39 billion. Bangladesh exports goods worth approximately $491.73 million to South Korea, while imports from the country amount to around $902.90 million, leaving Bangladesh with a trade deficit of about $411 million.Bangladesh’s major exports to South Korea include readymade garments, home textiles, leather and leather goods, footwear, pharmaceuticals, jute products, frozen foods and ceramics.Meanwhile, Bangladesh mainly imports iron and steel, industrial machinery, electrical equipment, plastics and plastic products, chemicals, and paper-related products from South Korea.Source: Bangladesh Ministry of Commerce