Trade & Investment Opportunities between Bangladesh & Brazil

 

Md. Joynal Abdin
Founder & Chief Executive Officer, Trade & Investment Bangladesh (T&IB)
Executive Director, Online Training Academy (OTA)
Secretary General, Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)

 

 

Brazil, Latin America’s largest economy, produced about USD 2.18 trillion in GDP in 2024, while Bangladesh reached around USD 450 billion, making it one of the fastest-growing economies in Asia.

 

Bilateral trade between the two countries has grown rapidly over the last decade. Recent estimates suggest two-way trade crossed roughly USD 2.3 billion in 2023, driven mainly by Brazil’s exports of agro-commodities and industrial inputs and Bangladesh’s exports of readymade garments (RMG) and textiles.

 

On the Brazilian side, exports to Bangladesh sugar, soybeans, cotton, edible oil, cereals, animal feed and iron/steel are now worth over USD 2–2.5 billion annually, making Brazil one of Bangladesh’s top five import sources. On the Bangladeshi side, exports to Brazil have climbed steadily: EPB data show shipments rising from USD 147 million to about USD 187 million between FY 2023–24 and FY 2024–25, a growth of 26%.

 

Politically, the relationship is also warming. A Basic Agreement on Technical Cooperation was signed in 2024, and both sides are exploring a MERCOSUR–Bangladesh Preferential Trade Agreement (PTA) to reduce tariffs and diversify trade.

 

For business communities in both countries, this is a strategic moment to move from “potential” to practical partnerships.

 

1. Item-Wise Trade Opportunities

Because the two economies are structurally complementary—Brazil as a resource and agro-industrial giant, Bangladesh as a competitive manufacturing and consumer market—product-specific opportunities exist in both directions.

1.1 From Brazil to Bangladesh

Agro-Commodities & Food Security

Raw sugar & processed sugar products
Bangladesh imports large volumes of sugar for domestic consumption and food processing. Brazil, the world’s leading sugar exporter, already supplies a major share of these needs, but there is room for:

• Long-term supply contracts
• Joint ventures in sugar refining and value-added confectionery production

Soybeans, soybean oil & soybean meal
Bangladesh’s edible oil and poultry/fish feed industries depend heavily on imported soybeans, oil and oilcake; Brazil is a competitive supplier of all three. Opportunities include:

• Dedicated bulk supply chains for Bangladeshi oil refiners
• Joint investments in crushing plants and feed mills

Maize (corn) & animal feed ingredients
With rapid expansion of poultry, dairy and aquaculture in Bangladesh, demand for maize and feed inputs is growing, opening space for contracted supplies and technology transfer in feed formulation.

 

Inputs for Industry

Raw cotton
Brazil’s cotton sector is among the world’s most efficient. Supplying high-quality cotton and cotton waste to Bangladesh’s spinning mills can deepen integration between Brazilian farms and Bangladeshi textile clusters.

 

Iron/steel scrap & semi-finished steel
Brazilian ferrous scrap and basic steel products can support Bangladesh’s construction, shipbuilding and light engineering industries, especially as infrastructure spending grows.

 

Food & Agribusiness Specialties

Beef, poultry and processed meat
Brazilian companies have expressed interest in exporting halal-certified beef and partnering in cattle and dairy development in Bangladesh. Bangladeshi investors could collaborate on processing plants, branding and distribution for price-sensitive consumers.

 

Fresh fruits (apples, pears), juices & coffee
A growing Bangladeshi middle class is demanding more imported fruits and specialty beverages. Brazilian exporters can position premium but affordable fruit, juices and coffee via supermarket chains and e-commerce platforms.

 

1.2 From Bangladesh to Brazil

Readymade Garments & Textiles

Knitwear (T-shirts, sweaters, pullovers)
Bangladesh is the world’s second-largest apparel exporter. Knitwear already accounts for a large share of exports to Brazil and continues to grow as Brazilian retailers look for cost-competitive sourcing beyond Asia’s traditional hubs.

 

Woven garments (shirts, trousers, suits, jackets)
There is scope to expand into mid-market menswear, casualwear and fast fashion, particularly through:

• Private-label manufacturing for Brazilian brands
• Near-warehouse or bonded facilities in Brazilian ports for quicker distribution

 

Traditional & Emerging Goods

Jute and jute products
As a leader in sustainable fibers, Bangladesh can supply jute yarn, cloth, bags, geo-textiles and eco-friendly shopping bags to Brazilian supermarkets, agro-exporters and construction firms seeking greener packaging solutions.

 

Leather & footwear components
Brazil has a strong footwear industry but imports leather and semi-finished leather goods. Bangladeshi tanneries and leather goods manufacturers can fill niches in mid-range products, fashion accessories and components.

 

Pharmaceuticals
Bangladesh’s generic drug industry is internationally competitive and exports to over 150 countries. Partnering with Brazilian distributors, hospitals and public procurement channels can open doors for affordable generics, OTC medicines and vaccines (subject to ANVISA approvals).

 

Ceramics & tableware, light engineering products
Tiles, sanitaryware and tableware from Bangladesh can serve Brazil’s housing and hospitality markets, while light engineering products (simple machinery parts, electrical accessories) can enter as cost-effective imports for Brazilian SMEs.

2. Investment Opportunities

Beyond trade, cross-border investment and joint ventures can create deeper, more resilient value chains.

2.1 Brazilian Investment in Bangladesh

a) Textiles & Apparel

• Joint ventures in spinning, weaving, dyeing and finishing facilities catering to both Brazilian and global buyers.
• Investments in sustainable textile production (water-saving, recycling, circular fashion) leveraging Bangladesh’s large workforce and Brazil’s technology in machinery and chemicals.

 

b) Agro-Processing & Food Industry

• Sugar refining, edible oil refining, feed-mill operations and cold-chain logistics to support Bangladesh’s fast-growing food value chains.
• Co-branding of Brazilian agricultural products processed or packaged in Bangladesh for regional export to South Asia and ASEAN.

 

c) Meat, Dairy & Agritech

• Modern cattle farming, dairy processing and meat processing plants using Brazilian expertise in genetics, feed and farm management.

 

d) Infrastructure & Energy

• Investments in ports, logistics hubs, grain terminals and bulk storage to smooth the movement of commodities.
• Participation in renewable energy (biofuels, biomass, wind, solar) where Brazil has strong capabilities.

 

e) Services & Technology

• Brazilian IT, fintech and payment companies can partner with Bangladeshi banks and mobile operators to introduce innovative digital financial services.

 

2.2 Bangladeshi Investment in Brazil

a) Garment & Textile Retail Presence

• Setting up representative offices, design studios or small manufacturing/finishing units inside Brazil’s free trade zones or industrial parks.
• Bangladeshi garment groups can invest in:
  • Local warehousing and distribution centers
  • Joint branding with Brazilian fashion retailers
  • E-commerce platforms targeting Brazilian consumers

 

b) Jute Branding & Processing

• Investments in jute-based eco-packaging and geo-textiles in Brazil to serve agribusiness and infrastructure projects, using Bangladeshi know-how and local Brazilian fibers.

 

c) Pharmaceuticals & Health Products

• Strategic alliances or equity stakes in Brazilian pharma distributors to register and market Bangladeshi generics.
• Collaborations in biotech research, vaccine development and clinical trials.

 

d) IT & BPO Presence

• Establishing Bangladeshi IT/BPO delivery centers or project offices in Brazilian tech hubs (e.g., São Paulo, Campinas) to serve Lusophone clients in Latin America and Africa.

 

3. Tourism Opportunities

Currently, tourism flows between Bangladesh and Brazil are limited, but the potential is substantial.

 

3.1 Why Brazilians Should Look at Bangladesh

• Nature & Eco-tourism: Sundarbans mangrove forest (UNESCO site), Cox’s Bazar (one of the world’s longest natural sea beaches), tea gardens of Sylhet, and riverine landscapes.
• Cultural & Spiritual Tourism: Rich Islamic, Buddhist and Hindu heritage; historic mosques and archaeological sites.
• Business & MICE Tourism: As Bangladesh develops into a regional manufacturing and logistics hub, more Brazilian executives will travel for trade fairs, sourcing missions and joint ventures.

 

3.2 Why Bangladeshis Should Explore Brazil

• Iconic Destinations: Rio de Janeiro, São Paulo, Amazon rainforest, Iguazu Falls, Pantanal wetlands.
• Sports & Events: Football, motorsport, music festivals, and potential sports-tourism packages.
• Educational & Language Tourism: Opportunities to study Portuguese, business and agribusiness in Brazilian universities.

 

3.3 What Business Communities Can Do

• Develop joint tour packages (e.g., “Brazil for Bangladeshis” and “Bangladesh for Brazilians”) through partnered tour operators.
• Promote business + leisure (bleisure) trips around trade fairs and sectoral expos.
• Work with airlines and intermediaries to negotiate better connectivity and through-ticketing, even without direct flights.

4. Opportunities in the Service Sector

Services trade and cooperation can add a new dimension to the relationship.

4.1 Information Technology & Digital Services

• Software development, mobile apps and fintech solutions from Bangladesh can serve Brazilian SMEs and startups at competitive cost.
• Brazilian companies can offer expertise in agritech, biotechnology and industrial automation, working with Bangladeshi tech firms and universities.

 

4.2 Education & Skills

• Student and faculty exchanges in agriculture, textiles, engineering, medicine and climate science.
• Joint degree programs between Brazilian and Bangladeshi universities, including Portuguese and English language training.

 

4.3 Professional Services

• Cooperation in legal, accounting, logistics, shipping, certification and quality assurance services tailored to bilateral trade.
• Cross-border consulting for companies entering each other’s markets (market research, regulatory advisory, M&A support).

 

4.4 Sports, Media & Creative Industries

• Bangladesh’s passion for cricket and Brazil’s for football can be used to develop joint sports academies, tournaments and merchandising.
• Co-production of documentaries and digital content highlighting success stories in South–South cooperation.

 

5. Existing Barriers

Despite the opportunities, several obstacles limit the full potential of Bangladesh–Brazil economic cooperation.

1. High Tariff Barriers
   1. Brazilian import tariffs on ready-made garments often range around 30–35%, eroding the price competitiveness of Bangladeshi apparel.
2. Lack of PTA/FTA Framework
   1. There is no bilateral FTA yet; trade still operates under MFN tariffs in MERCOSUR’s common external tariff schedule. Discussions on a MERCOSUR–Bangladesh PTA are ongoing but not concluded.
3. Logistical Distance & Connectivity
   1. Long shipping routes via transshipment hubs increase freight time and cost.
   2. Absence of direct air links hinders business travel and tourism.
4. Information & Perception Gaps
   1. Limited knowledge among Brazilian businesses about Bangladesh’s capabilities beyond garments, and vice versa regarding Brazil’s diversified industrial base.
5. Regulatory & Standards Barriers
   1. Complex customs procedures and product certification (especially pharma, food, and cosmetics).
   2. Limited mutual recognition of standards and testing.
6. Financial & Currency Constraints
   1. Limited use of local currencies or regional mechanisms; dependence on third-country currencies raises transaction costs and FX risk.
7. Visa & Business Mobility Issues
   1. Business travelers often face lengthy visa processes and documentation requirements, discouraging frequent visits.

 

6. Recommendations to Overcome Barriers

To unlock the full potential of this partnership, both public and private actors must act in a coordinated way.

6.1 Government-to-Government Actions

1. Fast-Track a MERCOSUR–Bangladesh PTA
   1. Prioritize tariff reductions on:
      1. Bangladeshi garments, jute goods, leather, pharmaceuticals
      2. Brazilian agricultural commodities, cotton, soy products and industrial inputs
   2. Build on the already-signed Basic Agreement on Technical Cooperation as a framework for deeper trade integration.
2. Customs & Standards Cooperation
   1. Sign MoUs between customs authorities, standards bodies and drug regulators (e.g., ANVISA and DGDA) for:
      1. Mutual recognition of certain tests
      2. Simplified procedures for low-risk products

• Priority lanes for trusted traders

3. Trade Facilitation & Logistics
   1. Encourage:
      1. Dedicated shipping lines or long-term contracts with major carriers
      2. Use of Brazilian and Bangladeshi ports as regional hubs (e.g., Chattogram for South Asia; Santos or Paranaguá for South America).
   2. Easier Business Visas
      1. Introduce multiple-entry business visas, faster processing and digital applications for bona fide businesspeople via chambers and exporters’ associations.

 

6.2 Role of Chambers & Business Associations

Organizations like BBCCI, FBCCI and Brazilian chambers can:

• Organize regular B2B matchmaking events, sector-specific webinars and trade missions in both directions.
• Maintain updated “opportunity lists” of products and investment projects.
• Support SMEs with market intelligence, translation and legal/regulatory advisory.

 

6.3 Private-Sector Strategies

• Long-Term Partnerships: Move from spot trading to strategic alliances and joint ventures, especially in textiles, agro-processing and pharmaceuticals.
• Local Presence: Open liaison offices, hire local agents and use local warehousing to better understand consumer preferences and regulatory nuances.
• Branding & Storytelling: Market products under a South–South cooperation narrative sustainable jute from Bangladesh, green soy and sugar from Brazil, affordable medicines from Bangladesh, and innovative agritech from Brazil.

 

Conclusion

Bangladesh and Brazil may be geographically distant, but economically they are natural partners. Brazil brings vast land, resources, agribusiness strength and industrial know-how. Bangladesh contributes a young workforce, competitive manufacturing, strategic location and a rapidly expanding domestic market.

 

Bilateral trade is already rising into the multi-billion-dollar range, and recent high-level visits, technical cooperation agreements and business delegations show that political will is now aligned with business interest.

 

For the business communities of both countries, the message is clear:

• Think beyond traditional partners.
• Invest in relationships, not just transactions.
• Use this window before Bangladesh’s LDC graduation and amid global supply-chain reshuffling to lock in long-term South–South partnerships.

 

If governments can reduce barriers and the private sector steps forward with ambition and creativity, trade, investment, tourism and services between Bangladesh and Brazil can move from “promising” to “transformative” for both economies.