Towards A Bi-lateral FTA with China: Potential Implications and Negotiation Strategies for Bangladesh

Raihan, Selim and Razzaque, Mohammad A. (2020): Towards A Bi-lateral FTA with China: Potential Implications and Negotiation Strategies for Bangladesh.

Abstract

The growing relative significance of China in the global economy and international trade has been a defining feature of globalization over the past three decades. Trade with China, which continues to grow quite strongly, offers new opportunities for specialization, efficiency gains, export market diversification and attracting investments. China is also a prominent force in global supply chains, forming networks of cross-border suppliers. It has now become an important source of technical and financial assistance, particularly in developing large-scale infrastructures. Very recently, China has offered an extended duty-free market access of 97.5% of tariff lines to Bangladesh going much beyond of about 62%. However, this kind of unilateral offer remains valid until a country’s LDC graduation. Bangladesh will have to ensure continuity of the improved market access offer to generate and sustain the interest of investors who would want to take advantage of the preferences. A negotiated trading arrangement (e.g. FTA) with China will thus remain an important issue in the medium to longer terms.

• Item Type: MPRA Paper
• Language: English
• Keywords: FTA, Bangladesh, China, BRI, FDI
• Subjects: F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F1 - Trade > F17 - Trade Forecasting and Simulation; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F47 - Forecasting and Simulation: Models and Applications

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