Need For Comprehensive Economic Partnership with Partner Countries

Abstract

Most popular news since last few years is that, Bangladesh is going to be graduated from the Least Developed Country (LDC) list by 2024. It makes us happy and hopeful about economic future of the nation. Many international studies forecasted Bangladesh as Next eleven / N-11, Fortier -5, 30th largest economy, and 28th largest economy so on and so forth. All of these findings are forecasting not the irrevocable fat. These forecasting could be reality if we work together to achieve those otherwise, we may fail to reach into any of the above-mentioned destinations. It is very true that we have potentials but have to undertake preplanned development initiatives to make those forecasting colourful reality. Let’s try to understand what will be the scenario soon after the LDC graduation happens. Bangladesh will lose all sorts of tariff preferences into international market which we are enjoying now. It will take three years i.e. by 2027 Bangladesh will lose all LDC tariff preferences into international market. One study showed that, Bangladesh will lose 8 per cent of its total export due to preference erosion from 2027. Bangladeshi products will face addition 6.7 per cent duty to enter into the developing markets. CPD showed that the preference erosion loss could be worth of USD 2.7 billion. It is not like that only preference erosion will be the main challenge. Another major challenge will be compliance of products standards to enter into various developed markets. Now Bangladeshi exports are getting special consideration from many standard and regulatory compliances due to an LDC country. For example, LDC countries are weaved from intellectual property rights like patent, design, trademark, GI etc. implementation but graduated Bangladesh will have to face to implement those rights. It will require additional infrastructural development to impose IPR relevant provisions at home and abroad.

Keywords: Free Trade Agreement, FTA, Comprehensive Economic Partnership, CEPA

JEL Classification: P33, P45