Brazil, the largest economy in South America, has expressed strong interest in forging a bilateral trade agreement with Bangladesh to deepen economic cooperation between the two nations.

If negotiations progress smoothly, an agreement could be signed during the Brazil-Bangladesh Annual Bilateral Meeting, scheduled to take place in Dhaka later this year.

The prospect of a trade pact emerged during a recent meeting between Gabriel Galipolo, President of Brazil’s Central Bank, and Dr Md Tauhedul Islam, Bangladesh’s Ambassador to Brazil.

The discussion focused on enhancing trade and investment ties amid evolving global economic challenges.

According to the Bangladesh Embassy in Brazil, the current annual trade volume between the two countries has surpassed $4 billion, reflecting growing economic engagement.

However, both sides see significant potential for further expansion.

Tauhedul Islam highlighted the pressing need for a bilateral agreement, particularly in light of increased tariffs imposed by the United States on exports from both Bangladesh and Brazil.

These external pressures, he argued, make regional and South-South cooperation more crucial than ever.

To that end, the Ambassador presented a concept paper outlining a proposed trade agreement aimed at: Reducing or eliminating mutual tariffs, facilitating smoother trade through improved banking mechanisms, including the timely opening of Letters of Credit (LCs), expanding market access for key exports such as textiles, pharmaceuticals, agricultural goods, and machinery.

Galipolo welcomed the proposal and confirmed that Brazil will soon send a draft version of the trade agreement to Bangladeshi authorities for review and negotiation.

The Bangladesh Embassy views this initiative as a historic opportunity, especially as the country prepares for graduation from Least Developed Country (LDC) status in 2026. With the loss of preferential market access, diversifying trade partnerships has become a strategic priority.