Bangladesh decides to join largest trade bloc

[MH.Yang]

We did give up on something, we chose a democracy. Thanks.

This is a trade agreement, it has nothing to do with the political system. Countries with various political systems have acceded to these trade agreements.
Well, let's stop this topic. I just think Bangladesh has given up a good opportunity.

 

[mmr]

Young population isn't the only criteria. The block has to allow you to join also.

I dont see why they wont. Pak middle class will grow many folds in future. Its a huge market with fifth largest population.

 

[Indos]

Either way i think bd will have strong support from china and japan to join the group. Bd need to open up its economy for global competition.

With current high tarrif, BD still has large trade deficit. So how do you think BD can compete the others when the tarrif is lifted ?

DHAKA, May 20 (Xinhua) -- Bangladesh's trade deficit has surged to nearly 14.5 billion U.S. dollars in the first three quarters of the current 2020-21 fiscal year as an increase in imports outpaced that in exports, showed the latest data from the central bank.

Bangladesh trade deficit surges to 14.5 bln USD in first 3 quarters of FY - Xinhua | English.news.cn

www.xinhuanet.com

 

[salute]

With current high tarrif, BD still has large trade deficit. So how do you think BD can compete the others when the tarrif is lifted ?

DHAKA, May 20 (Xinhua) -- Bangladesh's trade deficit has surged to nearly 14.5 billion U.S. dollars in the first three quarters of the current 2020-21 fiscal year as an increase in imports outpaced that in exports, showed the latest data from the central bank.

Bangladesh trade deficit surges to 14.5 bln USD in first 3 quarters of FY - Xinhua | English.news.cn

www.xinhuanet.com

Stats and Maths are irrelevant. For PDF Bangladeshis, Bangladesh can even compete with China and win. If you show them the reality, you become the jealous Hindutvadi.

 

[Chhatrapati]

How come there is no Pakistan in any of the "free trade" blocks or in a an FTA with any nation? This is why it's being left behind. It's time to become economically strong.....

It's a two way street. You have an FTA with China and see what happened, the markets flooding with Chinese goods now think of China plus other manufacturing hubs in South East Asia. It'll drown your local industry first you need to have a competitive local industry that can export at competitive pricing then you can sign FTA it'll be beneficial.

 

[DJ_Viper]

It's a two way street. You have an FTA with China and see what happened, the markets flooding with Chinese goods now think of China plus other manufacturing hubs in South East Asia. It'll drown your local industry first you need to have a competitive local industry that can export at competitive pricing then you can sign FTA it'll be beneficial.

"I" have an FTA with China? I wish we made everything in the US ourselves and kept our industry and IT to ourselves as well. I got no'ne with anyone. I want Americans to have American business and jobs, I hope that clarifies my stance. And thanks for refreshing my supply chain and manufacturing 101 from decades ago.

 

[DJ_Viper]

I dont see why they wont. Pak middle class will grow many folds in future. Its a huge market with fifth largest population.

I harp on this subject here a lot. Lack of a proper foreign and economic policy is the one to blame.

 

[X-ray Papa]

Stats and Maths are irrelevant. For PDF Bangladeshis, Bangladesh can even compete with China and win. If you show them the reality, you become the jealous Hindutvadi.

I heard that cow pee can cure people from covid-19
SUPA POWA 2021

 

[Chhatrapati]

"I" have an FTA with China? I wish we made everything in the US ourselves and kept our industry and IT to ourselves as well. I got no'ne with anyone. I want Americans to have American business and jobs, I hope that clarifies my stance. And thanks for refreshing my supply chain and manufacturing 101 from decades ago.

I wasn't talking about the US. I was talking about the country you talked about in my quote. Pakistan... You're welcome

 

[mb444]

With current high tarrif, BD still has large trade deficit. So how do you think BD can compete the others when the tarrif is lifted ?

DHAKA, May 20 (Xinhua) -- Bangladesh's trade deficit has surged to nearly 14.5 billion U.S. dollars in the first three quarters of the current 2020-21 fiscal year as an increase in imports outpaced that in exports, showed the latest data from the central bank.

Bangladesh trade deficit surges to 14.5 bln USD in first 3 quarters of FY - Xinhua | English.news.cn

www.xinhuanet.com

BD trade deficit is primarily comprised of raw material and machinery to service RMG and other industries. The output of these industries is not exclusively for export so deficit is baked in. Internal consumption of finished goods in country increases GDP but does not show up in trade stats.

A significant chunk of the deficit is caused by purchase of oil and gas. No getting away from this pandemic or no pandemic.

Lastly a small percentage of the deficit is caused by BD purchase of rice to ensure food security even though we are self sufficient.

The bottom line is deficit has grown as BD economy has grown, however these are not as a result of luxury goods.

It is a point of concern and the solution is to diversify the economy and increase incountry capability for value addition.

As to joining RECP.... complete no brainer.... off course we should join. It is always better to be in a club than out of it. I always commend a cautious approach and by all mean we should explore potential negative scenarios but ignoring such a large trading block is never going to be a serious option.

Joining the block will mean BD will have to reduce tarrif, but also will enjoy reduced tarrif for its goods. There will be win and losses no doubt by sectors but trade liberalisation in the long run will benefit all.

https://www.google.com/amp/s/www.thedailystar.net/business/economy/banks/news/trade-deficit-hits-all-time-high-2149626?amp

 

[mmr]

With current high tarrif, BD still has large trade deficit. So how do you think BD can compete the others when the tarrif is lifted ?

DHAKA, May 20 (Xinhua) -- Bangladesh's trade deficit has surged to nearly 14.5 billion U.S. dollars in the first three quarters of the current 2020-21 fiscal year as an increase in imports outpaced that in exports, showed the latest data from the central bank.

Bangladesh trade deficit surges to 14.5 bln USD in first 3 quarters of FY - Xinhua | English.news.cn

www.xinhuanet.com

Many asean countries have trade deficit as well. Like Philippines.

Closed economy never can grow. There are many examples of that.

What bd can do is join after 2026 once ldc benefits expired and prepare for competition next few years.

 

[bluesky]

BD trade deficit is primarily comprised of raw material and machinery to service RMG and other industries. The output of these industries is not exclusively for export so deficit is baked in. Internal consumption of finished goods in country increases GDP but does not show up in trade stats.

A significant chunk of the deficit is caused by purchase of oil and gas. No getting away from this pandemic or no pandemic.

Lastly a small percentage of the deficit is caused by BD purchase of rice to ensure food security even though we are self sufficient.

The bottom line is deficit has grown as BD economy has grown, however these are not as a result of luxury goods.

It is a point of concern and the solution is to diversify the economy and increase incountry capability for value addition.

As to joining RECP.... complete no brainer.... off course we should join. It is always better to be in a club than out of it. I always commend a cautious approach and by all mean we should explore potential negative scenarios but ignoring such a large trading block is never going to be a serious option.

Joining the block will mean BD will have to reduce tarrif, but also will enjoy reduced tarrif for its goods. There will be win and losses no doubt by sectors but trade liberalisation in the long run will benefit all.

https://www.google.com/amp/s/www.thedailystar.net/business/economy/banks/news/trade-deficit-hits-all-time-high-2149626?amp

Yes, you are right. Below is an excerpt to support what you wrote:

"The following product groups represent the highest dollar value in Bangladesh’s import purchases during 2019. Also shown is the percentage share each product category represents in terms of overall imports into Bangladesh.

1. Machinery including computers: US$5.8 billion (11.5% of total imports)
2. Cotton: $5.4 billion (10.8%)
3. Mineral fuels including oil: $4.4 billion (8.7%)
4. Electrical machinery, equipment: $3.2 billion (6.4%)
5. Iron, steel: $2.9 billion (5.8%)
6. Plastics, plastic articles: $2.2 billion (4.4%)
7. Vehicles: $1.7 billion (3.5%)
8. Manmade staple fibers: $1.6 billion (3.2%)
9. Manmade filaments: $1.42 billion (2.8%)
10. Knit or crochet fabric: $1.35 billion (2.7%)

Bangladesh’s top 10 imports represent about three-fifths (59.7%) of the overall value of its product purchases from other countries.

Iron and steel posted the fastest growth in cost among Bangladesh’s top 10 import categories, up by 4.8% from 2018 to 2019. The other top product category to appreciate year over year was manmade filaments, due to its 1.8% increase.

Leading the decrease among the top 10 Bangladeshi imports was cotton via its -21.3% drop year over year, ahead of the 21% decline for imported electrical machinery and equipment".

 

[serenity]

Didn't BD join RCEP? @MH.Yang so why are you saying they have given up a good opportunity?

I think they are quite right on this. At first, BD will find they are less competitive but like you said, hopefully that also means they find their niche faster and become competitive. It could make or kill economies.

 

[bluesky]

Vietnam is a one party socialist republic. They can do whatever they want for betterment of the country. There is a continuation of policies. India and Bangladesh are democracies where ruling class have to cater to sentiments and perceptions of the people.

India is a democracy but BD is not. It is a non-elected one-person dictatorship. So, it can do whatever it wants, be it good or bad for the country.

 

[MH.Yang]

Didn't BD join RCEP? @MH.Yang so why are you saying they have given up a good opportunity?

I think they are quite right on this. At first, BD will find they are less competitive but like you said, hopefully that also means they find their niche faster and become competitive. It could make or kill economies.

I remember that India and Bangladesh did not join RCEP. Actually, I prefer the Vietnamese way.