Bangladesh closer to joining world's largest free-trade bloc as RCEP working group approved

Bangladesh has moved a step closer to joining the Regional Comprehensive Economic Partnership (RCEP), with trade ministers of the bloc approving the formation of an ad hoc working group to accelerate the accession process for Bangladesh and three other applicants.

The decision was taken at the fifth RCEP Ministerial Meeting held in Manila, Philippines, on 21 September, according to a Ministry of Commerce press release issued today (24 September).

The working group will facilitate formal discussions and technical processes with Bangladesh, Chile, Sri Lanka and Hong Kong (China), as part of the bloc's roadmap for expanding its membership.

The RCEP Joint Committee had recommended forming the group, and ministers formally endorsed the recommendation at the Manila meeting.

In a joint statement issued after the meeting, RCEP members reaffirmed their commitment to maintaining the agreement as an open and inclusive framework. The working group will advance discussions with interested economies and review their progress towards accession.

Members also reviewed the progress of accession-seeking economies, discussed removing unnecessary barriers to international trade and addressed WTO reform.

According to the commerce ministry, joining RCEP could help Bangladesh address trade challenges following its LDC graduation, maintain preferential market access, strengthen links with global supply chains and attract foreign direct investment (FDI).

The RCEP comprises the 10 Asean member states along with China, Japan, South Korea, Australia and New Zealand, making it one of the world's largest free-trade blocs.

The meeting was co-chaired by Indonesia's Deputy Minister of Trade Dyah Roro Esti Widya Putri and New Zealand's Shane Reti.

Professor Dr Abdur Razzaque, chairman of private research organisation RAPID, sees the RCEP's initiative as a positive step towards Bangladesh joining the world's largest trade bloc.

Speaking to TBS, he said there had once been indications that RCEP might admit only two countries as new members. Had that been the case, Bangladesh would have faced competition from the other three applicant countries.

"Now that an ad hoc accession working group has been formed to facilitate the accession of all four applicants, including Bangladesh, this is a very positive development. The committee will examine how prepared Bangladesh and the other applicant countries are to comply with RCEP's rules and procedures and to open their markets to member states."

Razzaque said Bangladesh would need the consent of all RCEP member states to become a member of the bloc. If even one member state objects, Bangladesh's accession would not be possible.

"Therefore, Bangladesh will also have to undertake diplomatic efforts in this regard," he said.