Why Bangladesh should join RCEP

Bangladesh's graduation from the Least Developed Country (LDC) category will mark a significant milestone in its economic journey. However, the transition will also bring new challenges, particularly in maintaining export competitiveness after the loss of preferential trade benefits. In this changing landscape, joining the Regional Comprehensive Economic Partnership (RCEP) could become an important strategic option.

RCEP membership would provide Bangladesh with wider access to regional markets and strengthen its integration into global value chains. As businesses increasingly seek efficient production networks, participation in the bloc could attract foreign direct investment, encourage technology transfer, and create new opportunities for export diversification. These advantages would support the country's long-term goal of becoming a competitive, industrialised middle-income economy.

Despite these opportunities, Bangladesh must also recognise the potential risks. Greater trade liberalisation may increase pressure on domestic industries that are not yet ready to compete with larger regional producers. The government could also experience a decline in tariff revenues, while businesses may need time and investment to adapt to a more competitive market environment. In addition, RCEP's commitments extend beyond existing WTO obligations, requiring broader reforms in trade, investment and services.

For these reasons, any decision to join RCEP should be based on careful economic analysis rather than short-term expectations. Strengthening industrial capacity, improving productivity and implementing supportive policies will be essential before entering such a comprehensive trade agreement.

If Bangladesh manages the transition wisely, RCEP could serve as a powerful platform for sustaining export growth, attracting investment and ensuring long-term economic resilience in the post-LDC era. The challenge lies not only in joining the agreement but also in preparing the economy to fully benefit from it.

Hamidur Rahman

Comilla

hamidur203.cou@gmail.com