Bangladesh, India to launch CEPA talks by June this year

Media reports maintained this citing concerned officials while adding Dhaka aims to bolster bilateral trade and investment with its second-largest trade partner, while New Delhi gears up for preparatory measures.

The ministry of commerce of Bangladesh has already furnished trade statistics to facilitate discussions, following the 15th meeting of the Joint Working Group on Trade held in Dhaka in September 2023 even as India is expected to reciprocate by sharing relevant data promptly.

Meanwhile, two committees, an advisory committee (AC) and an 11-member Trade Negotiation Committee (TNC), have been formed as well.

As per the Regional Trade Agreement (RTA) Policy-2022, Bangladesh’s TNC will collaborate with its Indian counterpart and regularly update the competent authorities.

Bangladesh Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi, in a bilateral meeting in September 2023, expressed anticipation for CEPA negotiations even as both nations agreed to conclude discussions for a comprehensive partnership forum by 2026, as reiterated in a joint statement issued in New Delhi in September 2022.

Bangladesh’s ministry of commerce has conducted various meetings with different ministries and stakeholders, paving the way for necessary consultations.

A negotiation committee and a high-powered advisory committee have been constituted to navigate the complex CEPA negotiations.

This pact, considered more advanced than a free-trade agreement (FTA), holds significant implications for Bangladesh post-graduation from the least developed country (LDC) status.

Bangladesh’s existing preferential trade agreement (PTA) with Bhutan highlights its limited experience in managing such comprehensive deals. However, CEPA negotiations with India signify a strategic move to secure trade benefits beyond 2026.

The CEPA aims to safeguard Bangladesh’s duty-and quota-free (DFQF) market access to India for most products post-graduation and by signing the CEPA, Bangladesh aims to mitigate potential challenges following its transition to a developing nation.

ALCHEMPro News Desk (DR)