Australia Bangladesh trade and investment potential

Australia and Bangladesh are enjoying their diplomatic relationship of 47 years from the period right after the independence of Bangladesh in 1971. Australia was one of the first countries to recognise Bangladesh and established its resident mission in Dhaka in 1972. The bi-lateral relationship between these two nations are mainly based on aid and trade. Australia’s aid to Bangladesh have been increasing steadily over this four and half decades, from US$1.22 million in 1971 to US$89.9 million in 2018 with an exceptional US$121 million in 2012. The trade relationship between these two countries goes back to the 1970s and grew consistently after the independence of Bangladesh. Total trade increased from A$2.7 million in 1972 to A$350.1 million in 2000. Between 2001 and 2018, trade value grew over 440% to $1.9 billion in 2018, suggesting a strong trade relationship between these two countries. It can be observed that Bangladesh has reduced its dependency on Australian aid, instead engaged in trade with Australia, one of the major Asia Pacific countries in attempt to enhance the economic growth and development of Bangladesh.