Update Country Report Maldives 24 Mar 2021

Event

Since March 17th several foreign dignitaries have made official visits to Bangladesh to participate in the ongoing celebrations to mark 50 years of the country's independence.

Analysis

These visits have reaffirmed Bangladesh's warm ties with its South Asian neighbours and facilitated the government's ongoing efforts to deepen the country's bilateral ties, with the aim of signing preferential trade agreements (PTAs). This is in preparation for the country's upcoming graduation from the UN's least-developed country status in 2026, and the eventual loss of associated trade privileges once the grace period ends.

The president of the Maldives, Ibrahim Mohamed Solih, arrived on March 17th, and his three-day visit concluded with the signing of four agreements covering areas of diplomatic and cultural exchange, as well as trade (particularly fisheries). The signing of a PTA and establishment of direct air and shipping services were also discussed.

Sri Lanka's prime minister, Mahinda Rajapaksa, arrived on March 19th, and his two-day visit also involved discussions on boosting connectivity. A new co-operation agreement on youth development was signed, while others covering education, health and professional training were renewed.

Bidya Devi Bhandari became the first president of Nepal to visit Bangladesh on March 22nd. Her ministerial entourage oversaw the signing of four agreements covering tourism, culture, connectivity and co-operation. Notably, a PTA was not signed, as it remains stuck on the point of duties and charges.

Bhutan's prime minister, Lotay Tshering, landed in Bangladesh on March 23rd for a three-day visit. Bhutan was the first country to recognise Bangladesh's independence in 1971 and was the country's partner in its first PTA in December 2020. The theme of bilateral discussions to improve co-operation and connectivity is likely to continue during Dr Tshering's visit, but no new agreements are expected.

India's prime minister, Narendra Modi, will draw the celebrations to a close with his upcoming visit on March 26th. Mr Modi's visit to Bangladesh reflects the continuation of warm bilateral ties between the two neighbours, despite some tense undercurrents recently. It will also set the scene for further strengthening of ties and the facilitation of improved trade and connectivity at the countries' border.

Impact on the forecast

We maintain our forecast that Bangladesh will actively pursue bilateral trade and investment relationships over the forecast period (2021-25).