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      <h1 class="entry-title" style="box-sizing: border-box; font-size:
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        transparent;">Bangladesh Weighs Pros and Cons of Joining TPP</h1>
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          font-size: 15px; vertical-align: baseline; color: rgb(153,
          153, 153); background: transparent;">by Tara Donaldson</div>
        <time class="entry-date published" get_the_author()="" );=""
          datetime="2016-03-28T15:58:05+00:00" style="box-sizing:
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          transparent;">Posted on March 28, 2016</time><span
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            <figure id="attachment_34688" class="wp-caption aligncenter"
              style="box-sizing: border-box; display: block; margin: 0px
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              15px; vertical-align: baseline; clear: both; width: 450px;
              background: transparent;"><a
href="https://sourcingjournalonline.com/wp-content/uploads/2015/08/DhakaBangladesh.jpg"
                style="box-sizing: border-box; color: rgb(0, 0, 0);
                text-decoration: none; margin: 0px; padding: 0px;
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                  src="cid:part6.00070102.04030101@tradejustice.net"
                  alt="Area of Dhaka, the Capital of Bangladesh"
                  class="size-full wp-image-34688" style="box-sizing:
                  border-box; border: 0px; vertical-align: baseline;
                  margin: 0px 0px 5px; padding: 0px; outline: 0px;
                  font-size: 15px; max-width: 100%; background:
                  transparent;" height="311" width="450"></a><figcaption
                class="wp-caption-text" style="box-sizing: border-box;
                display: block; margin: 0px; padding: 0px; border: 0px;
                outline: 0px; font-size: 15px; vertical-align: baseline;
                font-style: italic; color: rgb(153, 153, 153);
                background: transparent;">Area of Dhaka, the Capital of
                Bangladesh</figcaption></figure>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">Not
              that Bangladesh is eligible to join the Trans-Pacific
              Partnership (TPP), since it’s still in the dog house with
              the United States for its labor standards, but the
              Southeast Asian nation has already begun mulling the
              benefits and setbacks the 12-nation trade deal could
              bring.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">A
              study by the Bangladesh Tariff Commission (BTC) said the
              country is neither in a position to join the TPP, nor does
              it need to do so.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">Bangladesh
              Ministry of Commerce senior secretary Hedayetullah Al
              Mamoon told the Financial Express, “We have been examining
              all aspects. We will take a decision on joining the TPP
              once it appears necessary for us.”</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">Currently,
              Bangladesh has tariff-free access to most of the TPP
              member markets under its least developed country (LDC)
              status, with the exception of the U.S., which suspended
              its trade benefits under the Generalized System of
              Preferences (GSP) in June 2013 and so far has not yet
              deemed the country fit for reinstatement.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">Australia,
              Canada, Japan, Singapore and New Zealand are among the TPP
              member countries that afford Bangladeshi products
              tariff-free market access, so joining the TPP would not
              have far-reaching benefits in that regard.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">The
              BTC believes that joining the TPP would mean a decline in
              revenue from import duties because, as a member of the
              bloc, Bangladesh would have to reciprocate the duty breaks
              for partner countries.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">Taking
              Singapore and Japan in particular—which together provided
              10 percent of Bangladesh’s imports in 2015—earnings from
              duties could drop quite a bit. Currently, import duties
              account for roughly 27 percent of Bangladesh’s total
              revenue earnings, according to the Financial Express.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">For
              now, the country is keeping an eye on Vietnam and the
              forthcoming future competition it will face from the
              nation expected to benefit the most from the TPP trade
              deal.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">Both
              Bangladesh and Vietnam saw the biggest growth in apparel
              exports to the U.S. in January, with Bangladesh’s growth
              coming in at 11.4% to $498 million and Vietnam exporting
              $926 million in apparel to the U.S. in the month, a 16.5%
              jump.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">But
              with Vietnam’s membership in the TPP, the country could
              soon give Bangladesh an even bigger run for its exports.
              Vietnam already pays a lower average duty on apparel
              destined for the U.S. than Bangladesh, and with those
              duties being overwhelmingly reduced or eliminated once TPP
              takes effect, Bangladesh will be at a further
              disadvantage.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">All
              that aside, Bangladesh knows its musings about joining the
              TPP, at this stage, are just that.</p>
            <p style="box-sizing: border-box; margin: 0px 0px 15px;
              padding: 0px; border: 0px; outline: 0px; font-size: 15px;
              vertical-align: baseline; background: transparent;">“Right
              now, Bangladesh is not able to join the TPP bloc,” Centre
              for Policy Dialogue executive director Mustafizur Rahman
              told the Financial Express. “We need to improve our
              standards including addressing the labor issue before
              joining the bloc.”</p>
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