Bangladesh decides to join RCEP: Reports

Bangladesh has decided to join the Regional Comprehensive Economic Partnership or RCEP — on 15 November 2020, 15 countries namely South Korea, China, Japan, Australia, New Zealand and; 10 members of the Association of Southeast Asian Nations (ASEA): Thailand, Myanmar, Malaysia, Singapore, Brunei, Vietnam, Laos, Cambodia, Indonesia and Philippines, inked the world’s largest free trade agreement that covers 2.2 billion people with a combined GDP of US $ 26.2 trillion — to maintain its eligibility for duty-free trade facilities in the markets of nearly one-third of the global economies after it graduates to a developing nation in 2026 even as Bangladesh Commerce Ministry will send a formal proposal to the RCEP headquarters, conveying Bangladesh’s interest in availing a membership to the bloc.

Media reports maintained this citing Additional Secretary to the ministry Hafizur Rahman regarding the same while adding a decision to this end was taken at a recent meeting.

Meanwhile, speaking to the media, Commerce Ministry officials, reportedly, maintained that with the trading alliance of 15 economies, including China and Japan, entering into force at the beginning of 2022, Bangladesh’s exports to the RCEP nations will not face much issues until 2026 when the country’s duty-free access to these two major markets will end even as Bangladesh is getting duty-free facilities in New Zealand and Australia too, which after the LDC graduation, will no longer be available while, on the other hand, in case the country (Bangladesh) does not sign separate FTAs (free trade agreements) with those countries by 2026 or join the RCEP, it will lose its competitive edge in apparel export destinations, especially in China and Japan, even if Vietnam, which is a close competitor of Bangladesh in the realm of apparel manufacturing and export, by virtue of being an RCEP signatory, will enjoy duty-free access there after the deal takes effect.

Keeping in mind the possible losses of trade benefits in RCEP member countries, Bangladesh has decided to join the bloc, the concerned officials, reportedly, stated.