Dhaka: Bangladesh has officially requested admission into the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade agreement led by China. The Commerce Ministry submitted a letter of approval to the Foreign Ministry on Monday, marking the country’s first step toward joining the bloc.
This initiative is primarily motivated by Bangladesh’s impending graduation from the United Nations’ list of least developed countries (LDCs) in 2026, which will result in the loss of preferential trade privileges with the Association of Southeast Asian Nations (ASEAN). Joining RCEP could provide access to markets in ten ASEAN countries, including Brunei, Indonesia, Malaysia, Thailand, and Vietnam.
RCEP, which includes 15 member nations that account for approximately 30% of the world’s GDP and 25% of global trade, was officially introduced in November 2020 and became operational in January 2022. It allows for membership from industrialized, developing, and LDCs.
A senior official from the Ministry of Trade confirmed the letter had been sent, and the Chief Advisor’s Office has already authorized Bangladesh’s RCEP membership request. The Commerce Ministry indicated that evaluations for membership have been completed.
Economic projections suggest that joining RCEP could lead to a 3.36% increase in foreign direct investment (FDI) and a boost of USD 3.26 billion in exports, particularly benefiting the apparel sector. The research predicts an 18% increase in demand for skilled and unskilled labor in this industry, and an overall GDP growth of 0.26%.
However, challenges remain in the services, investment, and e-commerce sectors, which may face heightened competition. Due to its geographical location, Bangladesh will need to engage in separate negotiations with ASEAN Regional Forum members but stands to benefit from its proximity to these markets.
Additionally, the Trade Ministry announced plans to begin formal discussions next month in Dhaka for an economic partnership agreement (EPA) with Japan, following a feasibility study that was previously completed. Talks regarding a Comprehensive Economic Partnership Agreement (CEPA) with India are still pending, with discussions expected to commence soon for a free trade agreement (FTA) with China.
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