![]() However, Vietnam has signed bilateral FTA with the European Union (EU) which will guarantee its preferential market access for its exports to the EU markets. Though Bangladesh gets duty free quota free (DFQF) market access in the EU market, this will cease after 2027. Despite several challenges, Bangladesh has been able to keep its position in the global market in the case of readymade garments (RMG) exports. So, at present import restrictions may benefit some domestic companies, but in the long run Bangladeshi exports will suffer.īangladesh's biggest worry will be how to compete with Vietnam. However, once Bangladesh graduates in 2024 and finishes the three-year grace period after graduation in 2027, it will lose preferential treatment in RCEP markets which are now providing such facility to Bangladesh. ![]() By being part of the new trade bloc, these LDCs will continue to enjoy preferential market access even after their graduation. Among them, both Laos and Myanmar have gained eligibility to graduate from the LDC category in 2018 along with Bangladesh. Three LDCs such as Cambodia, Laos and Myanmar are members of the new pact. However, experts say it might take the whole of 2021 to complete this process. Most importantly, the agreement has to be approved by at least six Asean countries and three non-Asean partner countries. Indeed, elimination of 90 percent tariffs in RCEP economies will take two decades from the time it comes into force. Third, realisation of benefits from such multi-country trade deals takes time. Within RCEP region, Bangladesh's exports to these countries are more than 80 percent. Second, as a least developed country (LDC), Bangladesh enjoys various types of preferential treatments to a number of RCEP countries including Australia, China, Japan, New Zealand, South Korea and Thailand. First, Bangladesh's exports to these countries is about 10 percent of total exports. The pattern of Bangladesh's exports to RCEP countries indicates that Bangladesh may not worry too much at this moment for a few reasons. Bangladesh may not face immediate challenge With India's withdrawal from the pact in November 2019, China will gain influence through further value chain integration in the 14 RCEP markets. Though TPP is much more ambitious than RCEP as it covers issues such as environmental and labour standards, RCEP provides enormous opportunities for its members to grow more. Hence TPP could be a balancing factor over China's leadership in the region. Six countries-Australia, Japan, Malaysia, New Zealand, Singapore and Vietnam-are common in both the agreements. The 12 countries of the CPTPP were-Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the USA. The Trump administration had earlier abandoned the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in January 2017. So, RCEP is thought to be a vehicle of strengthening China's influence in the Asia-Pacific region in the absence of the USA in similar trade deals in the region. Ironically, the USA has failed to show any leadership both in tackling the pandemic and dealing with the associated economic fallout. At the same time, one of the mighty countries of the world, the USA is busy with extraordinary domestic political crisis since Donald Trump refuses to concede his defeat in the presidential elections held in early November this year. The world is currently ravaged by the coronavirus pandemic. The timing of the signing of RCEP deal is of great significance. For all latest news, follow The Daily Star's Google News channel.
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