RCEP membership for Bangladesh

FE Team | Published: October 29, 2025 20:22:27

With the South Asian Association for Regional Cooperation (SAARC) virtually becoming dead and buried, the compulsion for Bangladesh to join a trade and economic bloc was overriding. The urgency has been further heightened by the country's graduation from LDC (least developed country) status and the tumultuous impacts triggered globally by US President Donald Trump's reciprocal tariff. A better option is to gain access to the Regional Comprehensive Economic Partnership (RCEP), world's largest trade bloc. The Economic and Social Commission for Asia and the Pacific, a UN agency, in its working paper titled, 'Analysis Report: Bangladesh's Service Trade and RCEP Accession' has observed that "RCEP accession, coupled with deep domestic reforms, is a strategic necessity for Bangladesh". Last year Bangladesh also formally made its request for its inclusion in the 16-member world's largest free-trade alliance. Comprising 10 ASEAN countries including Malaysia, Singapore, Thailand and Vietnam, the trade bloc also boasts members as diverse as Japan, Australia, South Korea and New Zealand with China playing the role of the architect in its formation.
The ESCAP prescribes strategies Bangladesh needs to develop in order to facilitate its qualification for membership in the RCEP. Right now the country is way behind the criteria set for the bloc's membership. Liberalisation of various areas of economic and trade sector is the name of the game. On that count, it has to prioritise some selective areas aligning to or nearly compliant with the RCEP criteria. Travel, banking and ICT correspond to the need of the trade bloc. The ESCAP reports is categorical that 'a phased, learning-by-doing' approach' would be suitable for Bangladesh. Cambodia and Lao PDR have been enjoying delayed liberalisation. Trade diplomacy can earn Bangladesh similar concessions. So, Bangladesh has to focus on the selective sectors compliant or about to comply with the RCEP set criteria.
Notwithstanding some advantages a few sectors enjoy to join the bandwagon, there is one particular area called the service sector that, according to the ESCAP, stands to benefit immensely from the proposed accession. The country exported services worth US$1.5 billion to RCEP members as against the import of services worth 3.61 billion in 2023. The modest growth of service exports by 8.2 billion could be far higher provided that Bangladesh adopted a policy of liberalisation and had obtained its membership in the bloc. Now Bangladesh is in negotiation with RCEP members separately for economic partnership agreement. This would be unnecessary had it done its homework well to have access to the bloc as a whole.
After all, the bloc currently accounts for 28 per cent of the global GDP, 29 per cent of the world population and 25 per cent of the international trade in goods and services. Any agreement with a single member nation can never be as beneficial as the privileges a member enjoys. Starting its journey in 2020, the RCEP has demonstrated its strength and the future potential it holds. With all its limitations Bangladesh should make its choice for service sector liberalisation clear as early as possible. Service sectors need trained and especially skilled workforce. Unless the country fine-tunes its RCEP-ready sectors and prepare its human resources through reforms to the education system, it cannot be equal to the task. The demographic dividend needs to be explored with sincerity and seriousness.