India, Bangladesh agree to wrap up CEPA negotiations by 2026

30 Nov '23

1 min read

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At the recent foreign-office consultation between India and Bangladesh, both sides agreed to wrap up talks on the proposed Comprehensive Economic Partnership Agreement (CEPA) by 2026, when the latter would graduate from the least developed country status.
CEPA could be used to raise Bangladesh's ability to offset graduation-related shocks, they felt.

India and Bangladesh recently agreed to wrap up negotiations on the proposed Comprehensive Economic Partnership Agreement (CEPA) by 2026.

The issue came up for discussion at the foreign-office consultation between the two countries held in New Delhi.

Both sides observed that CEPA could be used to raise Bangladesh's ability to offset shocks arising out of its graduation in 2026 from the least developed country status, according to reports in Bangladesh newspapers.

At the meeting, India suggested concentrating on construction of the cross-border power transmission lines.

The proposed CEPA goes beyond traditional free trade agreements, addressing trade in services, investment, intellectual-property rights and e-commerce.

It calls for withdrawal of duties, and is expected to boost Bangladesh's exports by 190.15 per cent and more if transaction costs are also reduced through improved connectivity, said a study by the Bangladesh Foreign Trade Institute and the Indian Centre for Regional Trade. India's exports to Bangladesh are expected to rise by 188 per cent.

The CEPA will raise Bangladesh's gross domestic product by 1.72 per cent and India's by 0.03 per cent, the study says.

ALCHEMPro News Desk (DS)

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