April 29, 2024
BANGKOK – The visit, which is the first official visit to Thailand by a Bangladeshi prime minister since 2002, is an opportunity for both sides to discuss ways to strengthen bilateral relations and expand cooperation in multiple areas, especially in light of the commencement of free trade agreement negotiations between the two countries.
The visit presents an opportune moment for both countries to deepen cooperation in trade, investment, healthcare, tourism, defence, consular affairs, agriculture, manufacturing, connectivity, ICT, energy, cultural exchange, and people-to-people ties.
In her multilateral engagement, the Bangladesh premier is scheduled to attend the 80th Session of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and have a bilateral meeting with Armida Salsiah Alisjahbana, the Executive Secretary of Unescap during her visit from April 24 to 29.
UNESCAP is providing technical support to the BBIN connectivity project, Asian Highway Network, and Cross Border Paperless Trade system, while also supporting Bangladesh in areas like LDC graduation, domestic revenue mobilization, women’s economic empowerment, and disaster risk reduction. Therefore PM Sheikh Hasina’s participation in the UN meeting demonstrates Bangladesh’s commitment to addressing regional challenges and contributing to the broader development agenda in Asia and the Pacific.
Bangladesh-Thai Cooperation
The diplomatic ties between the two nations were established after Thailand recognized Bangladesh on 5 October 1972. In 1974, Thailand inaugurated its Embassy in Dhaka, followed by Bangladesh establishing its Embassy in Bangkok at the ambassadorial level in 1975.
Since then, both nations have diligently endeavoured to fortify their bilateral relations for mutual gain. Their excellent rapport is deeply rooted in religious, cultural, and linguistic affinities. Moreover, a shared commitment to democracy, development, and international peace and security has fostered close collaboration in various areas of mutual interest.
Under the current government’s tenure since 2009, there has been a concerted effort to bolster relations with neighbouring countries, with Thailand occupying a pivotal position in Bangladesh’s look east policy.
Bangladesh and Thailand share common interests in promoting sustainable development and enhancing connectivity within the region. Through enhanced cooperation in these areas, both countries can work towards achieving mutual development goals and fostering greater regional integration.
During Sheikh Hasina’s ongoing visit to Bangkok, both countries will sign a letter of intent to start negotiating a free trade agreement (FTA) to boost trade. Moreover, the two countries are likely to ink MoUs on energy, tourism, visa exemption for official passport holders, and mutual cooperation in customs issues.
Previously, Bangladesh welcomed Thailand’s interest in profitable investments and proposed increased B2B institutional cooperation between trade bodies and joint chambers. Bangladesh sought Thai cooperation in agro-based industries, especially in poultry, fisheries, and aquaculture, through capacity building and technology transfer.
Through the bilateral meetings and signing of agreements, the visit is expected to contribute significantly to advancing mutual interests and strengthening the bonds of friendship between Bangladesh and Thailand.
Bangladesh has always had a large trade deficit with Thailand, with the Southeast Asian nation exporting various types of products to Bangladesh. Thailand’s trade with Bangladesh was more than $1.18 billion in 2023, including Bangladeshi products worth only $90 million sent to Thailand.
In 2022, Bangladesh sold $83 million in goods to Thailand, but imports from the country reached $1.17 billion. The free trade agreement can help reduce this huge gap in bilateral trade and significantly boost trade and investment between them.
Bangladesh and Thailand can leverage the tourism sector’s immense potential through joint activities, expertise exchange, Buddhist circuit tourism promotion, and investment in tourism areas. Bangladesh has emerged as a significant contributor to Thailand’s medical tourism sector over the past two decades.
In 2019, about 140,000 Bangladeshis visited Thailand for tourism including 4,300 going for medical treatment contributing almost 6.7 billion Thai baht to Thailand’s economy. According to the Foreign Minister of Bangladesh, collaboration in the tourism industry will create significant economic growth and employment opportunities in both countries. Besides this, visa exemptions for official passport holders of Bangladesh and Thailand will facilitate communication between government officials in both countries.
The future cooperation between Bangladesh and Thailand presents promising prospects, particularly in enhancing regional connectivity. Situated at strategic crossroads between East/Southeast Asia and the Middle East, both countries hold geopolitical significance for trade and transit.
By investing in infrastructure development such as ports, roads, and railways, they can establish efficient trade routes and facilitate the movement of goods and people across regions. This improved connectivity not only fosters economic growth but also strengthens diplomatic ties and regional integration.
The visit also holds significance in the context of Bangladesh’s multilateral diplomacy, the Rohingya crisis, and trilateral connectivity. Bangladesh actively participates in UNESCAP activities, contributing to resolutions and organizing side events to address socio-economic issues in the Asia-Pacific region. Bangladesh supports ESCAP initiatives for regional connectivity, energy access, and civil registration systems, contributing to shared prosperity in the Asia-Pacific.
As an elected member of ESCAP’s Governing Council, Bangladesh demonstrates leadership and commitment to regional development.
Bangladesh is expressing interest in joining the India-Myanmar-Thailand trilateral highway and the ASEAN as a sectoral dialogue partner.
As Thailand is a key member of the grouping, PM Sheikh Hasina’s visit provides an opportunity for Bangladesh to strongly negotiate on these topics. Again, since Myanmar is also a member of ASEAN, Bangladesh may seek the cooperation of Thailand to play a proactive role in ensuring the speedy repatriation of Rohingya refugees sheltered in Bangladesh.
To conclude, PM Sheikh Hasina’s visit to Thailand signifies a milestone in strengthening bilateral relations and fostering regional cooperation. Through enhanced collaboration in various sectors, including trade, investment, and regional connectivity, both countries can unlock new opportunities for mutual prosperity. By addressing challenges and leveraging their strategic positions, Bangladesh and Thailand can navigate towards a future of enhanced regional integration and diplomatic cooperation.