[🇧🇩] Economic, Political and Strategic Relations Between Bangladesh and Australia

Source: https://www.thedailystar.net/opinion/views/news/the-way-ahead-bangladesh-australia-trade-relations-3585761

The way ahead for Bangladesh-Australia trade relations
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Australia is a multicultural country with a diverse population drawn from various parts of the world. It is also a popular destination for international students and skilled migrants, including those from Bangladesh. Around 11,000 Bangladeshi students were enrolled in Australian universities last year. Currently, about 100,000 Bangladeshi diaspora live in Australia and are contributing to Australian nation-building efforts. Australia recognised Bangladesh on January 31, 1972 and was the first among the developed nations that influenced recognition from other countries. The then Australian Prime Minister Gough Whitlam visited Dhaka in January 1975 and met Father of the Nation Bangabandhu Sheikh Mujibur Rahman, giving Bangladesh-Australia relations a strong beginning. Although the momentum in bilateral relations was not sustained in the subsequent period, Australian support is seen in the reconstruction of Bangladesh and the field of socioeconomic development still today.

Given Bangladesh's emergence as a middle-income economy in the Indian Ocean region, Australia is interested in strengthening economic ties with the country, especially considering the present geopolitical situation.

Australia considers Bangladesh a key trade partner as the latter is the 27th trading partner of the former. Australia's interest in Bangladesh has increased due to Bangladesh's enhanced capacity to export in significant quantities to the Australian market and take in more Australian exports. The two countries signed a Trade and Investment Framework Arrangement (TIFA) together in 2021. This TIFA introduced new opportunities to boost bilateral trade and investment. Despite not being a regulatory obligation, TIFA serves as a platform to identify areas of comprehensive cooperation and create a favourable environment for trade liberalisation, thereby increasing trade and investment flow between the two countries. The TIFA facilitates the trade of new products, resulting in positive outcomes for both countries. A Joint Working Group was formed under TIFA, with due representations of relevant sectors and sub-sectors from both countries. The JWG is working to offer a mechanism to take forward discussions to realise fuller trade and investment possibilities. Two meetings of the JWG were held in Canberra and in Dhaka, with the third scheduled for May in Canberra. Australia has assured that it will continue the Duty-Free Quota-Free (DFQF) access for Bangladesh's products even after the latter's graduation from the LDC category, as agreed upon in the first JWG meeting. "Graduation from LDC status would not make any changes to existing access of Bangladesh's products to the Australian market," also confirmed by Senator Tim Ayres, Australian Assistant Minister for Trade, in a meeting with the Bangladesh High Commissioner to Australia, M Allama Siddiki, last year.

Two-way trade between Australia and Bangladesh now stands at more than AUD 4 billion, up from less than AUD 300 million about a decade back, thus registering the highest growth among all Australian trade partners. Australia is the 10th export market for Bangladesh. Two-way trade between Bangladesh and Australia grew at an average of over 11 percent annually over the last decade. Compared to 2021, Bangladesh's exports to Australia increased by about 38 percent last year. Although Australia is a relatively new trade partner for Bangladesh, the country is playing an important role in importing ready-made garments. Bangladesh exports about $1.5 billion annually to Australia in ready-made garment products, which is about 93 percent of Bangladesh's exports to the country. Bangladesh has captured approximately 12 percent of the Australian market in this particular sector.

But even though bilateral trade has increased significantly in recent years, both countries have yet to fully utilise their potential.

The Bangladesh High Commission in Australia has already taken various initiatives to promote Bangladeshi products. Last year, Bangladeshi companies participated in two trade fairs in Australia's largest cities, Sydney and Melbourne, under the initiatives of the High Commission. The Sydney fair was attended by 22 Bangladeshi public and private organisations, while 19 participated in the Melbourne fair. The Bangladesh Apparel Summit was held in Melbourne last year, organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and supported by the Bangladesh High Commission. The event signified a milestone in fostering collaboration and strengthening the bond between the apparel manufacturing industries of Bangladesh and Australian retailers.

Bangladesh can import a range of essential and agricultural products from Australia, including liquefied natural gas, wool, wheat, and pulses. Australia offers a variety of quality products that can be imported quickly and cost-effectively, making it a better option for Bangladesh than the US or European countries. There are also ample opportunities for increased trade and investment between the two countries, particularly in the areas of cotton, minerals, fintech, ITES, education, and skill development. Australia is keen on exporting wool to Bangladesh, while the garment sector in Bangladesh could benefit from processing Australian wool. Australia could also take steps to identify investment opportunities in Bangladesh, specifically in infrastructure, IT, and other prospective sectors. Bangladesh's 100 Special Economic Zones can be an attractive destination for Australian investors, too.

Bilateral trade between the two countries can grow significantly by introducing new products to benefit both economies. Beyond diversification of products, trade in services, particularly in education, skills development, and financial services, are prospective areas. Australia has the potential to meet Bangladesh's increasing education, training, and energy needs. The country also offers world-class expertise in agriculture and infrastructure development. Bangladesh can thus develop and modernise its educational curriculum, emphasising the demand for skilled manpower, technical skills, and English education in developed countries, including Australia. And though there is no scope to export unskilled or low-skilled manpower to Australia, the country can provide world-class technical and vocational training to Bangladeshis. While Bangladesh is set to graduate from a least-developed country to a developing country, it is crucial to upskill its workforce to be globally competitive. Bangladesh can seek the support of Australia in capacity building and human resource development through technical and vocational education cooperation.

Australia's support in the agricultural sector, particularly in food processing and refrigeration technology, as well as quality control, can be beneficial for Bangladesh. There is no barrier to launching direct air connectivity between Bangladesh and Australia as per the Memorandum of Understanding (MoU) signed between the two countries. Airlines of both countries can initiate direct flights at any time. The Bangladesh side emphasised the need for agreements to avoid double taxation and protect investment to further strengthen bilateral trade relations with Australia at the JWG meetings. Besides, people-to-people contacts and exchange of sports and culture between the two countries can further develop bilateral relations.

Greater understanding between Bangladesh and Australia under TIFA is expected to increase student mobility, skilled manpower and knowledge and technology sharing. Following the initiative by the Bangladesh High Commission in Australia, 18 more universities from Bangladesh have been added to Australia's education profile in 2023. This integration with the existing 12 universities will make it easier for graduates of a total of 30 public and private universities in Bangladesh to access Australian universities, research, and education. Furthermore, the Bangladesh High Commission is working towards signing MoUs between some universities in Bangladesh and Australia, which will expand the field of higher education and research between the two countries.

Bangladesh is focused on building and preserving peace and stability in the Bay of Bengal and the Indian Ocean region, and would like to keep its development journey uninterrupted. In this context, Bangladesh's close engagement with Australia, one of the major players in the Indian Ocean region, will impact regional peace, stability, and security, as well as the development of economic relations between the two countries. Bangladesh is making an effort to become more economically connected to Australia by jointly exploring vast areas of cooperation. Exchange of high-level political and business visits in the coming months is expected to strengthen further political and economic relations between both nations.

Md Tohidul Islam is a counsellor at the Bangladesh High Commission in Canberra, Australia.​

 

[Saif]

Australian envoy calls on Mirza Fakhrul

Australian High Commissioner in Bangladesh Susan Ryle on Thursday called on BNP Secretary General Mirza Fakhrul Islam Alamgir at the party chairperson’s Gulshan political office. BNP Standing Committee members Dr. Abdul Moyeen Khan and Amir Khasru Mahmud Chowdhury and Organizing Secretary Sh

thefinancialexpress.com.bd

Australian envoy calls on Mirza Fakhrul

BSS
Published :
Jul 03, 2025 21:56
Updated :
Jul 03, 2025 21:56

Australian High Commissioner in Bangladesh Susan Ryle on Thursday called on BNP Secretary General Mirza Fakhrul Islam Alamgir at the party chairperson’s Gulshan political office.

BNP Standing Committee members Dr. Abdul Moyeen Khan and Amir Khasru Mahmud Chowdhury and Organizing Secretary Shama Obaid were present during the meeting.

Following the meeting, BNP Standing Committee member Amir Khasru Mahmud Chowdhury told journalists that there is no reason to worry about the upcoming national parliament elections.

Voters and political parties want the country to remain in a stable state and elections should be held in a disciplined manner, he said.

Regarding reforms, Khasru said BNP is the initiator of reforms. In its 2030 vision the party floated 31 points for reform. Now, moving towards elections quickly is important for the country, he said.

About the meeting with the Australian envoy, the BNP leader said it is natural that there will be discussions on election.

“It has come to light that the people of Bangladesh have not been able to exercise their right to vote in the last three-four elections. Everyone is eagerly waiting to vote. Especially the new generations, who are around 30, could not exercise their voting rights at all. People all over the country are eagerly waiting for vote,” he said.

Khasru hoped that the next election will see a good voter turnout. People will go to the polling stations with great enthusiasm.

He said discussion about the preparations for the elections was held with the Australian envoy. In this regard, Australia assured of providing assistance to the Election Commission.

Australia want a fair election in Bangladesh. Their cooperation in this regard will continue, Khasru said.​

 

[Saif]

Dhaka, Canberra pledge for robust partnership

With the commitment to strengthen the evergrowing bilateral relations between the two friendly countries, the 6th SOT held in a warm and cordial atmosphere.

en.prothomalo.com

Dhaka, Canberra pledge for robust partnership
Diplomatic Correspondent Dhaka
Updated: 10 Dec 2025, 22: 18

The 6th round of Senior Officials’ Talks (SOT) between Bangladesh and Australia held in Dhaka on Wednesday, said a press release.

Ambassador Md Nazrul Islam, Secretary (Bilateral–East and West), Ministry of Foreign Affairs and Sarah Storey, First Assistant Secretary, South and Central Asia Division, Department of Foreign Affairs and Trade (DFAT), Government of Australia led the respective delegations.

With the commitment to strengthen the evergrowing bilateral relations between the two friendly countries, the 6th SOT held in a warm and cordial atmosphere.


The discussion featured constructive, forward-looking exchanges covering wide spectrum of bilateral relations including sectoral cooperation, trade and investment, development partnership, migration and mobility, maritime cooperation, multilateral engagement, climate change, and people-to-people linkages.

Both sides also exchanged views on regional and global matters of mutual interest, including the Indo-Pacific, IORA engagements, and the Rohingya situation.

The two delegations identified new avenues for cooperation in areas such as renewable energy, skills partnership and technology sharing, blue economy, artificial intelligence, cyber security and anti–money laundering initiatives.

Courtesy

First Assistant Secretary Storey reiterated Australia’s continued support to the Interim Government and its reform initiatives.

On the upcoming General Election, she conveyed that Australia looks forward to a free and fair election and democratic transition in Bangladesh including extending full support to the Bangladeshi expatriates for the postal voting.

Storey highlighted Australian Government’s priority areas in its relations with Bangladesh namely expansion of people to people linkages, growth of trade and investment, implementation of development partnership, support Bangladesh in managing Rohingyas, defence and security cooperation, Indo Pacific cooperation.

The Australian side conveyed their intention to prioritize Bangladesh as secondary manufacturing location for its cotton and wool industries.

Secretary Md Nazrul Islam proposed resumption of Work and Holiday visas for Bangladeshis in Australia, employment of Bangladeshi specified skilled workers in Australian mining sector, establishment of University of Canberra’s campus in Dhaka and collaboration between Australian TAFE and Bangladeshi TVET.

Nazrul Islam underscored the importance of increased high-level visits to advance the growing partnership between Bangladesh and Australia.

The talks concluded with the signing of ‘MoU on Employment of the Dependents of Diplomatic and Consular Personnel between Bangladesh and Australia’.

The visiting Australian delegation arrived in Dhaka on 9 December and will attend the Joint Working Group on Trade and Investment Meeting under the Trade and Investment Framework Agreement (TIFA) tomorrow at the Ministry of commerce.

The 7th SOT is expected to be held in Canberra next year.​

 

[Saif]

Strengthening economic cooperation with Australia

Bangladesh and Australia like to describe each other as "old friends", and the phrase is not just diplomatic rhetoric. Australia was among the first countries to recognise Bangladesh after its independence in 1971. More than half a century later, that early political goodwill has matured into a rel

thefinancialexpress.com.bd

Strengthening economic cooperation with Australia

Mir Mostafizur Rahaman
Published :
Jan 27, 2026 01:01
Updated :
Jan 27, 2026 01:01

Bangladesh and Australia like to describe each other as "old friends", and the phrase is not just diplomatic rhetoric. Australia was among the first countries to recognise Bangladesh after its independence in 1971. More than half a century later, that early political goodwill has matured into a relationship shaped by Commonwealth ties, people-to-people connections, shared democratic traditions and a steadily deepening economic partnership. Yet for all the warmth and symbolism, the hard truth remains: the full potential of bilateral trade and investment between Dhaka and Canberra is still largely untapped.

Trade between the two countries has grown impressively. Total two-way trade now stands at around $5bn, expanding at an average rate of more than 16 per cent annually over the past five years. Bangladesh has become Australia's 22nd largest export market, with Australian exports reaching $3.3bn in 2024. Bangladesh, for its part, enjoys duty-free and quota-free access to the Australian market -- a privilege that will continue even after it graduates from least developed country (LDC) status scheduled for November 2026. These are not trivial achievements. But they also raise an uncomfortable question: why, given such favourable conditions, does the relationship still feel underpowered?

Part of the answer lies in understanding how both sides are now trying to reframe the relationship. A significant step in that direction is the ongoing research titled Bangladesh Trade and Investment Study: Market Opportunities and Trade Barriers, jointly conducted by the Bangladesh Foreign Trade Institute (BFTI) and the Institute of International Trade (IIT) at the University of Adelaide. Funded by Australia's Department of Foreign Affairs and Trade (DFAT), the study reflects a more analytical, less rhetorical approach to bilateral engagement.

Its objectives are ambitious but necessary: to identify market opportunities for Australian exporters and investors, diagnose trade and investment barriers, and propose practical recommendations to boost economic flows in both directions. The scope of the study is equally telling. It spans agriculture; fisheries and livestock; energy and minerals; air connectivity; and vocational education -- sectors where Australia's comparative advantages are globally recognised. At the same time, it examines Bangladesh's own export-oriented and emerging sectors, including ready-made garments, information technology, light engineering, leather goods and footwear.

This breadth is important because it challenges a long-standing mismatch in expectations. Australian investors, by and large, have not aligned their interests with Bangladesh's officially declared thrust sectors. This misalignment partly explains the relatively low level of Australian foreign direct investment (FDI) in Bangladesh, despite strong trade growth. Another often-cited factor is investor preference for predictability. Australian firms tend to favour markets where Canberra has clear bilateral investment protection arrangements -- legal frameworks that reduce risk and enhance confidence.

Here, Bangladesh faces a strategic choice. Five years ago, the two countries signed a Trade and Investment Framework Arrangement (TIFA), establishing a joint working group to explore ways to deepen economic engagement. TIFA has provided an institutional platform, but it stops short of offering the legal certainty many investors seek. Trade officials in Dhaka increasingly argue that a bilateral investment treaty is the missing piece. Such treaties are widely used to protect foreign investors' rights, ensure fair treatment and provide safeguards against arbitrary policy shifts. For investors, they function as a form of legal insurance; for host countries, they signal seriousness about reform and openness.

The timing could hardly be more critical. Bangladesh's accession to larger trade blocs such as ASEAN or the Regional Comprehensive Economic Partnership (RCEP) may take years. In the interim, a bilateral investment treaty with Australia could serve as a bridge -- anchoring confidence at a moment when Bangladesh is transitioning out of LDC status and seeking to reposition itself as an upper-middle-income economy over the next decade.

Australia, for its part, has signalled growing interest. The appointment of a resident Austrade Trade and Investment Commissioner in Bangladesh in February 2025 was a quiet but meaningful milestone. It reflects recognition that Bangladesh is no longer merely a development partner or a low-cost sourcing destination, but a fast-growing market of more than 170 million people with expanding consumer demand, digital ambition and infrastructure needs.

The complementarities are striking. Australian exports of cotton and natural fibres feed directly into Bangladesh's globally dominant ready-made garment industry. Australian expertise in education -- particularly vocational and technical training -- aligns closely with Bangladesh's demographic reality: a young population urgently needing skills for a changing labour market. In energy and minerals, Australian companies are well placed to support Bangladesh's infrastructure expansion and energy transition, including renewable energy development.

Beyond commerce, the relationship is underpinned by a dense web of cooperation. Australia runs one of its most substantial development assistance programmes in Bangladesh, with a strong focus on education, economic resilience, gender equality and governance. Since 2017, Australia has committed more than $1.25bn to humanitarian responses linked to the Rohingya crisis, easing Bangladesh's burden in hosting over 1.1 million displaced people. This humanitarian engagement is not peripheral to trade; it shapes trust, political goodwill and long-term stability -- all prerequisites for sustainable investment.

People-to-people links are another quiet strength. More than 73,000 Bangladesh-born people now live in Australia, forming a bridge between the two societies. Student mobility has surged: over 18,000 Bangladeshi students enrolled in Australian institutions in 2024, a 50 per cent year-on-year increase, and numbers climbed further in 2025. Sporting exchanges, cultural cooperation agreements and governance fellowships add texture to what might otherwise be a purely transactional relationship.

Strategically, both countries share an interest in a peaceful and rules-based Indian Ocean region. They work together in forums such as the Indian Ocean Rim Association, the Bali Process, the Commonwealth, the World Trade Organization and the United Nations. Bangladesh's role as the largest contributor to UN peacekeeping operations underscores its growing global profile -- one that Australia has consistently acknowledged.

Yet none of this should breed complacency. Bangladesh still faces challenges in doing business: regulatory complexity, infrastructure gaps and policy unpredictability among them. Economic reforms -- from banking sector restructuring to labour law amendments -- are underway, but their credibility will ultimately be tested by implementation. For Australian investors accustomed to stable, transparent systems, progress in these areas will matter more than promotional roadshows or lofty declarations.

The opportunity, however, is real. Bangladesh is no longer a peripheral economy; it is a pivotal one in the Indo-Pacific. Australia is no longer just a distant partner; it is a source of technology, skills and capital that Bangladesh needs for its next growth phase. Moving from potential to performance will require more than goodwill. It will demand concrete legal frameworks, targeted investment strategies and a willingness on both sides to see each other not through the lens of habit, but of possibility.

Old friends, after all, can still discover new reasons to work together.​