To ensure greater market access to the Association of South-East Asian Nations (ASEAN) after graduating from a least developed country – as per reports by 2030, the ASEAN region will be the fourth-largest economy in the world – Bangladesh has reportedly initiated formal negotiations with the bloc to sign a free trade agreement (FTA).
According to reports, there are predominantly three principal reasons behind Bangladesh’s move which are to safeguard the duty privilege after graduation, Bangladesh can do well in ASEAN, which is a big market for the country and thirdly signing FTA with ASEAN means Bangladesh need not have to separately ink bilateral agreements with any of the 10 member countries of the bloc.
Speaking to the media, Commerce Secretary Md. Jafar Uddin, reportedly, underlined that he signed negotiation letter on 13 December and sent it to the Foreign Ministry to initiate formal negotiations with the ASEAN headquarters.
It may be mentioned here that thanks to its size, ASEAN – ASEAN also serves as an important source of raw materials for the Bangladesh’s RMG sector and other industries – has become a vital market for Bangladesh.
According to reports, a burgeoning middle-class with increased spending power and a huge consumer base of 642 million people, makes the bloc very important from Bangladesh’s perspective.
