Go-ahead awaited for Bangladesh's accession to RCEP bloc

[Black_cats]

Emerging Asia-Pacific-wide economic bloc​

Go-ahead awaited for Bangladesh's accession to RCEP bloc​

​

REZAUL KARIM

Published :
Sep 05, 2023 12:07 AM
Updated :
Sep 05, 2023 12:08 AM
Spadework is done and the go-ahead is awaited from the prime minister's office for Bangladesh's accession to an emerging economic bloc encompassing the Asia-Pacific region that represents a third of world GDP.


As soon as the approval comes, formal proceedings will kick-start at the forum headquarters for the country's membership in the Regional Comprehensive Economic Partnership (RCEP), commerce officials said.

They say Bangladesh has started the process of joining mega trade bloc on hope of a boost to export to the member-countries.

The commerce ministry has recently sent a summary of the RCEP deal and dos to Prime Minister Sheikh Hasina for necessary approval.

It expects to send a formal proposal to the depository and temporary secretariat of the world's largest trade bloc at the ASEAN headquarters for the country's membership.

Additional Secretary (FTA) Noor Md. Mahbubul Haq has said, "We have sent a summary to the Prime Minister for her approval. But we did not receive reply to date."

In reply to a question, he said: "After approval from the prime minister, we expect to send formal proposal to the RCEP for joining the bloc."

Bangladesh decided in principle to join the emerging vast trade bloc at workshop held at commerce ministry on August 01, with senior secretary at the commerce ministry Tapan Kanti Ghosh in the chair.

The ministry has already completed necessary scrutiny and review in this regard, based on commitments fulfilled by Vietnam, a member of the China-mooted bloc.

An official also said that the commerce ministry will have to take cabinet approval to move ahead. Vetting from the law ministry may also be required.

Participants in the workshop expressed their opinion in favour of signing a free-trade agreement (FTA) with the RCEP members with an eye to facing post-graduation challenges.

They viewed that the commercial and strategic importance of Bangladesh will get a boost in regional and international environment if Bangladesh joins the forum.

An earlier study conducted by Bangladesh Trade and Tariff Commission (BTTC) showed Bangladesh's trade with RCEP-member countries mostly concentrated on trade in goods.

Bangladesh's export may grow 17 per cent and gross domestic product (GDP) 0.26 per cent if free-trade agreement is signed with the bloc members, it mentioned.

The RCEP deal came into force in January 2022 and any country/customs territory is eligible for applying for membership.

As of now, 15 Asia-Pacific nations are party to the world's biggest free-trade agreement.

The ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, while its FTA partners are Australia, China, Japan, New Zealand and Korea.

An outstanding feature of the RCEP is that it represents the world's largest FTA, comprising about 30 per cent of global GDP and about a third of the world population.

The economic-cooperation forum, spanning Asia-Pacific realm that covers 2.3 billion people, accounts for US$ 25.8 trillion or about 30 per cent of global GDP.

Also, it accounts for $12.7 trillion or over a quarter of global trade in goods and services, and 31 per cent of global foreign direct investment (FDI) inflows.

In the fiscal year (FY) 2020-21, Bangladesh exported goods worth $3.9 billion to and imported goods worth $24.5 billion from these countries. On the other hand, at the same time, the services export was worth $1.8 billion and import worth $2.6 billion.

Bangladesh enjoys preferential market access to many of the RCEP countries, either through preferential trade agreement (PTA) or through GSP facilities.

After graduating from the least-developed country (LDC) status in 2026, the duty-free access will no longer be available except for reciprocal general preference under the Asia-Pacific Trade Agreement (APTA).

In such a situation, sustaining the consistent progress achieved by Bangladesh in bilateral export trade with some of the RCEP countries as well as availing the opportunity to some potential destinations in RCEP will be a real challenge.

The study says RCEP includes some of the major export destinations as well as major import sources of Bangladesh. "Considering the bilateral-trade scenario, RCEP remains more as an important partner from the Bangladesh perspective."

Import from RCEP contributes around 43.92 per cent of the total global imports by Bangladesh, 55.33 per cent of the total tax-revenue and 58.56 per cent of total revenue from customs duty collected under home consumption, as of FY 2020-21.

Thus, the probable accession of Bangladesh to RCEP may, however, have a negative impact on revenue generation from customs duty. Since some major import sources of Bangladesh like China, Japan, Thailand, South Korea, Indonesia, Malaysia and Australia are involved with RCEP, there is a threat of losing a certain amount of revenue from these countries.

More than 68 per cent of total merchandise exports to RCEP are under apparel-product category. Top twenty export items to RCEP mostly consist of apparel products and these twenty products constitute 64 per cent of total exportable.

The study found that the average most-favoured nation (MFN) tariffs for Bangladesh had been comparatively higher than that of the RCEP members. It says the probable increase in import along with a comparatively protective regime of Bangladesh estimated a probable high revenue loss for Bangladesh compared to that of the RCEP.

"However, as estimated trade creation would likely be higher than the trade-diversion effect for Bangladesh, it may generate additional revenue from other duties and charges, if not reduced due to a possible accession in RCEP," the study mentions as regards a tradeoff.

The Trade and Tariff Commission recommends that the government may express its positive stand regarding the accession of Bangladesh to RCEP through weighing all the pros and cons. In that case, domestic rules and regulations may need to be changed in some cases, if a situation arises.

The RCEP negotiations were formally launched during the 2012 ASEAN Summit in Cambodia. India withdrew from the agreement in November 2019 despite participation from the beginning of negotiations.

rezamumu@gmail.com

Go-ahead awaited for Bangladesh's accession to RCEP bloc

Spadework is done and the go-ahead is awaited from the prime minister's office for Bangladesh's accession to an emerging economic bloc encompassing the Asia-Pacific region that represents a third of world GDP. As soon as the approval comes, formal proceedings will kick-start at the forum headquart

thefinancialexpress.com.bd

 

[mb444]

No brainer... this is the organisation to join, not Brics.

Losing import tax revenue is a concern given BDs low tax to GDP ratio, but lets keep a clear head and take a long term view.

Openly trading with our immediate neighbours with lower cost and bureaucracy in the long run will bring more benefit than cost, improve our position srategically that in turn will help generate greater concession in other negotiations

 

[IndianLite]

No brainer... this is the organisation to join, not Brics.

Losing import tax revenue is a concern given BDs low tax to GDP ratio, but lets keep a clear head and take a long term view.

Openly trading with our immediate neighbours will lower cost and bureaucracy in the long run will bring more benefit than cost, improve our position srategically that in turn will help generate greater concession in other negotiations

I agree. RCEP a much more lucrative organisation than BRICS.

It also means Bangladesh and China can work together without Hinduvta meddling.

China has expedited RCEP membership as revenge for India blocking BRICS membership.

BRICS has become a talking shop. Russia, Brazil and South Africa are basket case economies.

And India and China rivalry has neutered it.

 

[protean]

Lol. One of the stupidest things to do when you have anything but chaddis to export. You always have to look at competences when entering trade negotiations. It will only increases the Chinese imports into Bangladesh while no one would be interested in Bangladesh chaddis given all Asian countries have their own.

This will in turn piss off US and western block which are actual benefactors for Bangladesh given how freely they have allowed Bangos to enter their markets as a special privilege extended to LDCs. I don't know why south Asian mullahs are so stupid when it comes to thinking through a policy.

 

[mb444]

Lol. One of the stupidest things to do when you have anything but chaddis to export. You always have to look at competences when entering trade negotiations. It will only increases the Chinese imports into Bangladesh while no one would be interested in Bangladesh chaddis given all Asian countries have their own.

This will in turn piss off US and western block which are actual benefactors for Bangladesh given how freely they have allowed Bangos to enter their markets as a special privilege extended to LDCs. I don't know why south Asian mullahs are so stupid when it comes to thinking through a policy.

BD does not get any privileges when it exports to US. Try again...

Chinese import increasing is not that big a deal, they are also relocating their industries to BD.

I agree. RCEP a much more lucrative organisation than BRICS.

It also means Bangladesh and China can work together without Hinduvta meddling.

China has expedited RCEP membership as revenge for India blocking BRICS membership.

BRICS has become a talking shop. Russia, Brazil and South Africa are basket case economies.

And India and China rivalry has neutered it.

Nothing has been expedited, read the article again.

Currently awaiting PMs approval before BD formally requests entry into group. If they agree which they should because BD was invited then the whatever the formal process is will begin.

 

[@blue Ocean]

Lol. One of the stupidest things to do when you have anything but chaddis to export. You always have to look at competences when entering trade negotiations. It will only increases the Chinese imports into Bangladesh while no one would be interested in Bangladesh chaddis given all Asian countries have their own.

This will in turn piss off US and western block which are actual benefactors for Bangladesh given how freely they have allowed Bangos to enter their markets as a special privilege extended to LDCs. I don't know why south Asian mullahs are so stupid when it comes to thinking through a policy.

No, you have a mistaken perception about BD joining RCEP. It will benefit BD after its status becocomes a developing one.

There are countries like Japan, Korea in the RCEP.But, you are talking of ASEAN countries only with low GDP.

BD should join it if allowed. The good point is India is not here to pull our legs.

 

[protean]

No, you have a mistaken perception about BD joining RCEP. It will benefit BD after its status becocomes a developing one.

There are countries like Japan, Korea in the RCEP.But, you are talking of ASEAN countries only with low GDP.

BD should join it if allowed. The good point is India is not here to pull our legs.

I don't mind. You happily join, I just think it's a stupid idea. The largest economy in the grouping itself is a developing economy and an export behemoth.

Japan and Korea are too exporting countries that benefit a lot with their trade with China. Their export basket is not limited by just chaddis. They have their own competencies while trading with China. What exactly does Bangladesh export other than clothing? How would you stop a serious negative trade balance that is inevitable as and when you join RCEP.

Trade deals are always give and take. They will negotiate to open your market as well including your automotive and electronics market. How many of chaddis export will it take to match up a car that they would export? Assuming that you are thinking that new production will come to the country because of cheap labour. It is a fallacy otherwise Africa would have been fastest growing manufacturing continent.

Industry move where they see talent with the required skills. Honestly tell me, how much of your populace is presently educated enough to make head and tails of chip assembly.

But I guess India is not there (for a good reason) is good enough reason to jump into your own hell, then who am I to stop, go right ahead.

 

[mmr]

Emerging Asia-Pacific-wide economic bloc​

Go-ahead awaited for Bangladesh's accession to RCEP bloc​

​

REZAUL KARIM

Published :
Sep 05, 2023 12:07 AM
Updated :
Sep 05, 2023 12:08 AM
Spadework is done and the go-ahead is awaited from the prime minister's office for Bangladesh's accession to an emerging economic bloc encompassing the Asia-Pacific region that represents a third of world GDP.


As soon as the approval comes, formal proceedings will kick-start at the forum headquarters for the country's membership in the Regional Comprehensive Economic Partnership (RCEP), commerce officials said.

They say Bangladesh has started the process of joining mega trade bloc on hope of a boost to export to the member-countries.

The commerce ministry has recently sent a summary of the RCEP deal and dos to Prime Minister Sheikh Hasina for necessary approval.

It expects to send a formal proposal to the depository and temporary secretariat of the world's largest trade bloc at the ASEAN headquarters for the country's membership.

Additional Secretary (FTA) Noor Md. Mahbubul Haq has said, "We have sent a summary to the Prime Minister for her approval. But we did not receive reply to date."

In reply to a question, he said: "After approval from the prime minister, we expect to send formal proposal to the RCEP for joining the bloc."

Bangladesh decided in principle to join the emerging vast trade bloc at workshop held at commerce ministry on August 01, with senior secretary at the commerce ministry Tapan Kanti Ghosh in the chair.

The ministry has already completed necessary scrutiny and review in this regard, based on commitments fulfilled by Vietnam, a member of the China-mooted bloc.

An official also said that the commerce ministry will have to take cabinet approval to move ahead. Vetting from the law ministry may also be required.

Participants in the workshop expressed their opinion in favour of signing a free-trade agreement (FTA) with the RCEP members with an eye to facing post-graduation challenges.

They viewed that the commercial and strategic importance of Bangladesh will get a boost in regional and international environment if Bangladesh joins the forum.

An earlier study conducted by Bangladesh Trade and Tariff Commission (BTTC) showed Bangladesh's trade with RCEP-member countries mostly concentrated on trade in goods.

Bangladesh's export may grow 17 per cent and gross domestic product (GDP) 0.26 per cent if free-trade agreement is signed with the bloc members, it mentioned.

The RCEP deal came into force in January 2022 and any country/customs territory is eligible for applying for membership.

As of now, 15 Asia-Pacific nations are party to the world's biggest free-trade agreement.

The ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, while its FTA partners are Australia, China, Japan, New Zealand and Korea.

An outstanding feature of the RCEP is that it represents the world's largest FTA, comprising about 30 per cent of global GDP and about a third of the world population.

The economic-cooperation forum, spanning Asia-Pacific realm that covers 2.3 billion people, accounts for US$ 25.8 trillion or about 30 per cent of global GDP.

Also, it accounts for $12.7 trillion or over a quarter of global trade in goods and services, and 31 per cent of global foreign direct investment (FDI) inflows.

In the fiscal year (FY) 2020-21, Bangladesh exported goods worth $3.9 billion to and imported goods worth $24.5 billion from these countries. On the other hand, at the same time, the services export was worth $1.8 billion and import worth $2.6 billion.

Bangladesh enjoys preferential market access to many of the RCEP countries, either through preferential trade agreement (PTA) or through GSP facilities.

After graduating from the least-developed country (LDC) status in 2026, the duty-free access will no longer be available except for reciprocal general preference under the Asia-Pacific Trade Agreement (APTA).

In such a situation, sustaining the consistent progress achieved by Bangladesh in bilateral export trade with some of the RCEP countries as well as availing the opportunity to some potential destinations in RCEP will be a real challenge.

The study says RCEP includes some of the major export destinations as well as major import sources of Bangladesh. "Considering the bilateral-trade scenario, RCEP remains more as an important partner from the Bangladesh perspective."

Import from RCEP contributes around 43.92 per cent of the total global imports by Bangladesh, 55.33 per cent of the total tax-revenue and 58.56 per cent of total revenue from customs duty collected under home consumption, as of FY 2020-21.

Thus, the probable accession of Bangladesh to RCEP may, however, have a negative impact on revenue generation from customs duty. Since some major import sources of Bangladesh like China, Japan, Thailand, South Korea, Indonesia, Malaysia and Australia are involved with RCEP, there is a threat of losing a certain amount of revenue from these countries.

More than 68 per cent of total merchandise exports to RCEP are under apparel-product category. Top twenty export items to RCEP mostly consist of apparel products and these twenty products constitute 64 per cent of total exportable.

The study found that the average most-favoured nation (MFN) tariffs for Bangladesh had been comparatively higher than that of the RCEP members. It says the probable increase in import along with a comparatively protective regime of Bangladesh estimated a probable high revenue loss for Bangladesh compared to that of the RCEP.

"However, as estimated trade creation would likely be higher than the trade-diversion effect for Bangladesh, it may generate additional revenue from other duties and charges, if not reduced due to a possible accession in RCEP," the study mentions as regards a tradeoff.

The Trade and Tariff Commission recommends that the government may express its positive stand regarding the accession of Bangladesh to RCEP through weighing all the pros and cons. In that case, domestic rules and regulations may need to be changed in some cases, if a situation arises.

The RCEP negotiations were formally launched during the 2012 ASEAN Summit in Cambodia. India withdrew from the agreement in November 2019 despite participation from the beginning of negotiations.

rezamumu@gmail.com

Go-ahead awaited for Bangladesh's accession to RCEP bloc

Spadework is done and the go-ahead is awaited from the prime minister's office for Bangladesh's accession to an emerging economic bloc encompassing the Asia-Pacific region that represents a third of world GDP. As soon as the approval comes, formal proceedings will kick-start at the forum headquart

thefinancialexpress.com.bd

This will help bd to get fdi from Asian countries

Should sign asap

 

[Species]

But I guess India is not there (for a good reason) is good enough reason to jump into your own hell, then who am I to stop, go right ahead.

India didn't join because Indians are some of the least productive people in the world. They know India just cannot compete in manufacturing.

However, that is not the case with Bangladesh.

The idea here is to replicate Vietnam by integrating Bangladesh with Chinese/Asian supply chain. The value addition might be low initially but both exports/imports and FDI will increase by manifolds. Will not only generate employments but also raise Bangladesh's geopolitical significance.

When it comes to trade liberalization there would be no opposition, be that US or China. The same reason why Western allies like Japan and Australia are also part of this bloc.

 

[protean]

India didn't join because Indians are some of the least productive people in the world. They know India just cannot compete in manufacturing.

However, that is not the case with Bangladesh.

The idea here is to replicate Vietnam by integrating Bangladesh with Chinese/Asian supply chain. The value addition might be low initially but both exports/imports and FDI will increase by manifolds. Will not only generate employments but also raise Bangladesh's geopolitical significance.

When it comes to trade liberalization there would be no opposition, be that US or China. The same reason why Western allies like Japan and Australia are also part of this bloc.

South Asian mullahs are productive? Good Joke.

 

[Species]

South Asian mullahs are productive? Good Joke.

Yep. Productivity is not how many leaves you feed your gau mata, pujari.

 

[IndianLite]

South Asian mullahs are productive? Good Joke.

Unlike India, Bangladesh doesn’t have a huge swathe of industry under license Raj.

Bangladesh focuses on things it is internationally competitive at. Hence it is not a very diversified economy.

RCEP will get to replace Indian goods in Bangladeshi market - worth about 20 billion.

And Bangladesh will get duty free access to sell low level manufactured goods to RCEP - worth about 10 billion.

It’s a win, win!!

It’s not Bangladesh that needs to be afraid it is the bordering states that need to be afraid.

West Bengal and Seven Sisters are entirely dependent on BD economy.

Which is why you are here crying?

 

[Cheepek]

India just needs to be extra cautious in the CEPA with BD after it joins RCEP, don't want Chinese products flooding the market.

 

[IndianLite]

India just needs to be extra cautious in the CEPA with BD after it joins RCEP, don't want Chinese products flooding the market.

You cannot do anything if China floods India with goods made in Bangladeshi factories.

Plastic goods like toys and utensils should be a lucrative area for Bangladesh.

CEPA will speed up FDA particularly from China.

 

[Cheepek]

You cannot do anything if China floods India with goods made in Bangladeshi factories.

You are funny!