Bangladesh plans to sign a free trade agreement (FTA) with the Association of South-East Asian Nations (ASEAN) to enjoy greater market access in the bloc after graduating from the least developed country grouping.The FTA will offer Bangladesh three benefits including a big market to improve its performance and safeguard the duty privilege after graduation. It would also prevent Bangladesh from signing any bilateral agreement with other members of the bloc.

Currently, Bangladesh is at the final stages of negotiations with Indonesia for a FTA for duty privileges on select goods traded between the two countries. However, the negotiation is now facing a stalemate since Indonesia disagrees with some terms, particularly in regards to some major export items such as garments, under the proposed FTA. Bangladesh has been a member of the ASEAN Regional Forum since 2006, which would be an advantage for the country during negotiations

The ASEAN has become a vital market for Bangladesh due to its immense size. The region has a huge consumer base of 642 million people and a burgeoning middle-class with newfound spending capabilities.

By 2030, the ASEAN region will be the fourth-largest economy in the world. Its GDP increased from $2,373 billion in 2007 to $4,034 billion in 2016, according to a study titled 'Bangladesh A story of a Phoenix.'