Bangladesh has prioritized joining the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade bloc led by China, over signing a Comprehensive Economic Partnership Agreement (CEPA) with India. The government will formally apply for RCEP membership, which includes 15 countries accounting for 30% of the global population and a combined market worth $26.3 trillion. Commerce officials believe joining RCEP will enhance Bangladesh’s regional connectivity and could boost exports by $5 billion.
Bangladesh will need to negotiate with RCEP members individually and reduce tariffs on 90% of trade within ten years. The government expects RCEP membership to increase exports, particularly in the garment sector, and attract foreign investment.
While discussions for FTAs with countries like Japan, China, and Singapore are ongoing, negotiations with India over CEPA have been paused. India previously expressed concerns about Bangladesh joining RCEP, which delayed the process. However, Bangladesh seeks to maintain flexibility and is open to exploring additional benefits from FTAs with RCEP members after joining the bloc.
Commerce ministry officials highlight RCEP’s potential to integrate Bangladesh into regional value chains, similar to Vietnam’s model of leveraging Chinese investments and exporting to RCEP countries.
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