Fifteen Asia-Pacific economies signed what could end up being the world's major free trade agreement on Sunday, covering practically a third of the global people and about 30 % of its global gross domestic product.
The Regional Comprehensive Economic Partnership (RCEP) will progressively lower tariffs and aims to counter protectionism, boost investment and invite freer motion of goods within the spot.
Joining the pact -- that involves China, Japan, South Korea, Australia, New Zealand and the 10 members of the Association of South East Asian Nations (ASEAN): Brunei, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Indonesia and the Philippines -- was never up for grabs for Bangladesh.
“This is for the ASEAN member countries which may have already signed afree trade agreement (FTA). As we are not eligible for joining as per the conditions and conditions, we're able to not join the RCEP,” Commerce Secretary Md Jafar Uddin advised Dhaka Tribune.
Since it is for ASEAN customers, not merely Bangladesh but also Nepal, Sri Lanka and Pakistan aren't qualified to receive joining the monetary partnership.
“However, we happen to be analysing the impact of the recently inked trade partnership to see whether it could be lucrative or certainly not for us. There is nothing ever fixed in the wonderful world of trade and the near future direction will be set predicated on the trade craze and mutual rewards among the partners.”
Right now, Bangladesh’s focus is about hammering out bilateral trade deals, Uddin said.
“We are intensively focusing on it in order that Bangladesh may improve its trade in your community in addition to with the global companions,” he said, adding Bangladesh’s impending preferential trade arrangement (PTA) with Bhutan by the following month as a good example.
Like Bangladesh, neighbouring India has stayed out of RCEP and will not expect to indication the agreement ever, regardless of the wide open invitation from the 15-member group.
India’s definitive stance employs it reached out to its business community to teach them on the goals of RCEP.
The response was not enthusiastic as business felt it could be swamped by imports with low duties, which it could not be able to compete with. This prompted the neighbouring region to forfeit the beginning of becoming a member of the mega trade pact.
For Bangladesh, the RCEP seems to have few attractions. In fiscal 2019-20, of the full total exports amounting to $33.7 billion, the RCEP countries accounted for approximately 10.4 % of the sum.