Brazil keen to ink trade deal with Bangladesh

Brazil has expressed keen interest in signing a trade and economic agreement with Bangladesh to boost bilateral commercial cooperation amid shifting global economic dynamics.

President of Brazil's Central Bank Gabriel Gal¡polo conveyed the interest during his first official meeting with Bangladesh Ambassador to Brazil Dr Md Touhidul Islam held in Bras¡lia on Wednesday, according to a press release received today.  

Following the meeting, the Bangladesh envoy said the annual bilateral trade volume between the two countries has already exceeded $4 billion.

In view of the recent global economic shifts and potential high tariffs imposed by the United States on both countries, Ambassador Islam highlighted the importance of establishing a formal trade framework between Bangladesh and Brazil.

He presented a concept paper during the meeting, proposing steps to reduce mutual tariffs, ease the challenges of opening Letters of Credit (LCs) in banks, and enhance two-way trade and investment.

Responding positively, the Brazilian central bank chief informed that Brazil would soon send a draft Memorandum of Understanding (MoU) to Bangladesh as the basis for a potential trade agreement.

If finalised, the agreement is likely to be signed during the upcoming annual Brazil-Bangladesh bilateral meeting to be held in Dhaka later this year.

"This is undoubtedly a historic opportunity for Bangladesh," said the release quoting Ambassador Islam.

He noted that amid global trade contraction, Brazil's proactive approach to deepen economic ties offers Bangladesh a timely and strategic opening, particularly as the country transitions from Least Developed Country (LDC) status. 

"As South America's largest economy, Brazil's engagement creates a unique opportunity for Bangladesh to address its post-LDC trade challenges and diversify its global trade partnerships," the Ambassador added.