Bangladesh begins gap analysis to fit in RCEP trade standards

Bangladesh begins a critical gap analysis of its economic strengths for aligning its trade policies with protocols of the Regional Comprehensive Economic Partnership (RCEP) for joining the world's largest trade bloc.

The comprehensive analysis aims to assess where Bangladesh currently stands in comparison to the China-led grouping's standards of doing trade and business.

This move comes ahead of the bloc's next meeting scheduled to be held at the RCEP Secretariat in Indonesia in January.

Bangladesh, along with three other applicants-Hong Kong, Sri Lanka and Chile-will submit reports on their preparedness and what they are willing to commit to under RCEP's regulations.

The RCEP Secretariat sent a letter to the Ministry of Commerce (MoC) last week with a direction for submitting a gap-analysis report within 90 days, officials said.

A senior MoC official says Bangladesh is now in an advantageous position due to its upcoming Economic Partnership Agreement (EPA) with Japan, which is now at its final stage. This agreement has drawn attention from other RCEP member- countries.

"The chief negotiator for this EPA, Mr. Kobayashi, is also a co-chair of the RCEP Secretariat, and understands Bangladesh's potential as a member of RCEP," he says.

However, international trade economist Dr Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID), emphasises active diplomatic engagement with RCEP members as such membership is usually granted based on unilateral decisions by member-countries.

He suggests that Bangladesh strengthen its position in RCEP negotiations by engaging through China.

He thinks RCEP members may view Bangladesh as valuable due to its large economy and the EPA with Japan.

Initially, he points out, RCEP may grant membership to just one of the four applicants. So, Bangladesh should engage with RCEP countries to advocate for awarding membership to more than one applicant.

Dr Razzaque says Bangladesh's ability to open up its economy by relaxing tariffs should be assessed properly as it is a vital requirement for the grouping's membership.

"And the positive aspect is that RCEP members can request a longer transition period to phase out protective tariffs."

Following the RCEP Secretariat's request for gap-analysis report, the MoC has engaged in capacity-building workshops with support from the Asian Development Bank (ADB).

Renowned legal experts of the ADB, who came from Brussels and Italy, as well as Dr Abdur Razzaque conducted a two-day workshop that drew officials from the MoC, the Ministry of Foreign Affairs, and the Ministry of Agriculture.

On October 27, Mr Razzaque conducted a session focusing on the economic cost implications of RCEP membership.

The gap analysis will cover trade in goods, services, and investment across the 20 chapters that define RCEP's rules and regulations.

An MoC official says Bangladesh's existing rules and regulatory gaps must be analysed to assess the country's ability to fit in RCEP rules.

He mentions that one notable challenge is Intellectual Property Rights (IPR). However, Bangladesh could manage this issue, given a 15-year transition period offered under RCEP's framework. He also says the Australian High Commission has offered technical assistance to prepare a gap-analysis report.

Bangladesh's path to RCEP membership faced some hurdles during the previous Awami League government. At the time, the MoC "could not make progress in negotiations with RCEP due to India's influence". However, progress is now being made, economists say.

While Bangladesh is moving forward with its RCEP bid, Hong Kong is considered in a better position, as its trade policies are already aligned with RCEP standards, they say.

doulotakter11@gmail.com