Written by The Banking Post
Brazil has expressed strong interest in forging a trade and economic agreement with Bangladesh to enhance bilateral commercial cooperation, as both countries navigate evolving global economic landscapes and potential tariff headwinds.
The proposal came during a high-level meeting between Gabriel Galípolo, President of Brazil’s Central Bank, and Bangladesh Ambassador to Brazil, Dr Md Touhidul Islam, held in Brasília on Wednesday, according to a press release issued in Dhaka.
During the meeting, Ambassador Islam noted that annual bilateral trade between Bangladesh and Brazil has already surpassed the $4 billion mark, reflecting growing economic engagement between the two nations.
Against the backdrop of global trade realignments and the looming threat of increased tariffs from the United States on both economies, the Ambassador underscored the urgency of establishing a formal trade framework to safeguard and expand bilateral trade.
He presented a concept paper proposing the reduction of mutual tariffs, streamlining the process for opening Letters of Credit (LCs), and encouraging greater two-way trade and investment.
In response, the Brazilian central bank chief welcomed the initiative and announced that Brazil would soon send a draft Memorandum of Understanding (MoU) to Bangladesh, serving as a foundation for the proposed trade agreement.
If negotiations proceed as expected, the agreement could be formalized during the upcoming Brazil-Bangladesh bilateral meeting, scheduled to take place in Dhaka later this year.
“This is undoubtedly a historic opportunity for Bangladesh,” said Ambassador Islam, emphasizing that Brazil’s proactive approach signals a strategic opening for Bangladesh at a critical juncture in its economic journey.
He added that, as the largest economy in South America, Brazil’s interest in deepening trade ties presents Bangladesh with a timely opportunity to navigate post-LDC challenges and diversify its global trade partnerships.
