Chile and Bangladesh Negotiate Free Trade Deal to Diversify Markets

Chile and Bangladesh are set to initiate negotiations for a Free Trade Agreement (FTA), signaling a strategic effort by Chile to diversify its international markets. The announcement came following a bilateral meeting between Chile's Minister of Foreign Affairs, Francisco Pérez Mackenna, and his Bangladeshi counterpart, Khalilur Rahman. This meeting occurred on the sidelines of the 50th anniversary of the Treaty of Amity and Cooperation in Southeast Asia, hosted in the Philippines. Minister Pérez Mackenna highlighted Bangladesh's potential as a trading partner, stating, "Chile aims to diversify markets, and in this context, we consider Bangladesh a partner with great potential." He expressed optimism about strengthening economic and commercial ties, identifying new avenues for bilateral trade, investment, and cooperation beneficial to both countries. Last year, trade between Chile and Bangladesh reached $310.6 million, exhibiting an average annual growth of 15.9% between 2020 and 2025. Chilean exports to Bangladesh saw a modest increase of 2.2% in the same period, totaling $41.8 million, primarily consisting of iron or steel waste and fish oil. Meanwhile, imports from Bangladesh, a global leader in apparel manufacturing, surged by 19.3% to $268.8 million, driven largely by cotton knit t-shirts. Chile views Bangladesh, with its population of approximately 177 million and sustained economic growth, as a market offering significant opportunities for expanding national exports.

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Chile aims to diversify markets, and in this context, we consider Bangladesh a partner with great potential.