On 3 November, Chief Adviser Professor Muhammad Yunus sought Indonesia’s backing for Bangladesh’s allege to affix the Affiliation of Southeast Asian Worldwide locations (Asean). Outdated to that, on 15 September, the Excessive Commissioner of Malaysia to Bangladesh, Haznah Md Hashim, stated that her country will serve Bangladesh’s proposal for inclusion within the association.
Also, on 17 October, the commerce ministry despatched a letter of consent to the international ministry, inquiring for Bangladesh’s entry into the China-led Regional Complete Economic Partnership (RCEP), the world’s finest alternate pact, of which all 10 Asean worldwide locations are contributors.
Bangladesh is within the mean time a member of the Asean Regional Dialogue board, and there possess been talks of the country’s inclusion to the association for a whereas. Bangladesh assigned its first Ambassador to Asean in 2013, whereas the Asean Committee in Dhaka turn into once established a 300 and sixty five days later.
As Bangladesh eyes contemporary horizons for economic progress, geopolitical impact, and strategic connectivity after the autumn of Sheikh Hasina’s regime on 5 August, becoming a member of the Asean has emerged as a compelling option.
With its expanding economic system, strategic geographic attach, and inspiring political panorama, Bangladesh stands to develop vastly by integrating into this dynamic bloc.
Nevertheless, the proceed to membership has its full of life portion of challenges, stressful a undeniable-eyed evaluation of every the opportunities and drawbacks.
Comparative advantages for Bangladesh
Asean economies possess developed comparative advantages in various industries, equivalent to electronics, pure sources, automotive production, and evolved manufacturing.
The member states possess a form of their industrial bases, leveraging innovation to enhance competitiveness in global markets, a sector where Bangladesh has lagged a long way within the serve of.
Vietnam, to illustrate, has reworked itself correct into a producing hub for electronics, exporting products for global giants cherish Samsung.
Equally, Malaysia’s evolved semiconductor industrial positions it as a serious participant in global offer chains.
In comparability, Bangladesh’s manufacturing stays centered on low-cost-added sectors, with restricted forays into electronics and varied excessive-tech industries.
Whereas Bangladesh has strengths in agriculture, pharmaceuticals, and light-weight engineering, these industries possess no longer yet accomplished the scale or sophistication required to compete with Asean economies.
A free-alternate agreement also can abate the expansion of our nascent pharmaceutical and light-weight engineering sectors, as we’re no longer in any situation to compete with worldwide locations cherish Vietnam and Indonesia in these sectors.
The agriculture sector provides one other comparability. Whereas worldwide locations cherish Cambodia and Myanmar portion Bangladesh’s reliance on agriculture, Asean countries possess increasingly integrated agri-tech to enhance productivity and cost addition. As an illustration, Thailand’s meals processing industrial demonstrates how technological investments can elevate broken-down sectors.
Bangladesh, despite its agricultural attainable, has lagged in increasing cost-added products and modernising its offer chains, making this a attainable website online of progress if it joins Asean.
Innovation and technology originate a cornerstone of Asean’s success, with worldwide locations cherish Singapore and Malaysia making necessary investments in research and construction (R&D).
Singapore leads in fintech and biotech innovation, whereas Malaysia specializes in green technologies and electronics. Bangladesh, by comparability, is at an early stage in building its innovation ecosystem. Although the ICT sector is increasing, the country lacks the broad R&D infrastructure and technological expertise that Asean economies hang.
Integrating into Asean might perhaps present Bangladesh with entry to technology transfer, partnerships, and expertise that might perhaps dawdle up its progress in innovation.
Asean membership would additionally mix Bangladesh into regional offer chains, in particular in excessive-cost industries equivalent to electronics, automotive, and evolved manufacturing.
Vietnam’s example is instructive, as its Asean membership has facilitated its emergence as a worldwide manufacturing hub.
Bangladesh might perhaps perhaps within the same vogue income by attracting international suppose investment (FDI) and embedding itself in these networks.
Moreover, Asean’s alternate agreements, alongside side the Regional Complete Economic Partnership (RCEP), would allow Bangladesh to diversify its export markets, reducing its reliance on broken-down companions in Europe and North America.
Economic integration and alternate advantages
Asean’s economic bloc, valued at $3.8 trillion, represents a lucrative market for Bangladesh. In spite of its proximity and strategic advantages, Bangladesh’s alternate circulation to these countries stays disproportionately low.
A peep conducted by Atiur Rahman, historical governor of Bangladesh Bank, displays that 40–60% of Bangladesh’s export attainable to Asean worldwide locations stays untapped.
Member worldwide locations cherish Vietnam, Thailand, and Malaysia are examples of how Asean facilitates economic progress thru alternate liberalisation and intra-regional cooperation.
Professor Dr Mustafizur Rahman, the Renowned Fellow on the Centre for Policy Dialogue (CPD), thinks that alternate negotiations with blocs cherish RCEP or Asean will be a long way more priceless for Bangladesh than signing bilateral alternate agreements.
“It reduces the potential of negotiation for us and or no longer it is more convenient to gain favourable provides,” he stated.
Put up LDC commencement, Bangladesh will lose its preferential market entry and face stringent suggestions of origin, potentially reducing its baseline exports by 7–14%.
Nevertheless, Asean’s $3 trillion economic bloc provides a lucrative more than just a few to mitigate these challenges.
“After our LDC commencement, we can must attract international investment. In the worldwide locations of Asean or RCEP, our export is nonetheless minimal. So if we signal a free alternate agreement or total economic partnership agreement with them, then we can gain market advantages,” Dr Rahman added.
By diversifying its product fluctuate and exploring contemporary markets interior Asean, Bangladesh can counterbalance the expected alternate losses. Pharmaceuticals, light engineering, and agricultural products stand out as sectors with excessive progress attainable in Asean markets.
Moreover, integration into Asean alternate networks might perhaps perhaps serve Bangladesh overcome its overreliance on ready-made clothes, which within the mean time yarn for 85% of its exports.
Moreover, Asean membership might perhaps perhaps serve Bangladesh negotiate better alternate phrases and attract intra-regional investments. Worldwide locations cherish the Philippines possess leveraged their membership to stable necessary international investments from Asean powerhouses cherish Singapore and Malaysia. Bangladesh can additionally grasp a equivalent formulation to develop more foothold in Southeast Asia.
Being a member of Asean also can additionally serve Bangladesh to was a member of RCEP. A peep conducted by Bangladesh Alternate and Tariff Commission (BTTC) showed Bangladesh signing a free-alternate agreement with RCEP-member worldwide locations also can merely expand our export by 17% and GDP 0.26%.
Strategic connectivity and infrastructure construction
Bangladesh’s attach as a bridge between South and Southeast Asia makes it a strategic asset for Asean. The Trans-Asian Railway (TAR) and Asian Freeway (AH) projects might perhaps perhaps dramatically boost connectivity, linking Bangladesh to Thailand, Myanmar, and even China’s Yunnan province.
Enhanced infrastructure, alongside side the Matarbari deep-sea port and expanded potential at Chattogram Port, would attach Bangladesh as a alternate and logistics hub for Asean worldwide locations.
The combination of Bangladesh into the Asean network might perhaps perhaps additionally serve mitigate its dependence on sea routes, offering more than just a few land-basically based completely corridors.
Geopolitical leverage and diversification
Becoming a member of Asean would bolster Bangladesh’s geopolitical standing. Membership in this bloc provides an more than just a few to its heavy reliance on India and extending dependence on China.
Asean affords a balanced platform where Bangladesh can have interaction with regional powers whereas asserting its autonomy in international policy.
RCEP, which contains China, Japan, and South Korea, additional underscores the strategic significance of membership.
This might perhaps no longer most efficient enlarge Bangladesh’s economic diplomacy but additionally attract investments in heavy industries, technology, and infrastructure.
Challenges ahead: Rohingya disaster and Myanmar
One of many most contentious issues in Bangladesh’s relatives with Asean is the Rohingya disaster. As Myanmar is a member say, Asean has been hesitant to grasp a firm stance, limiting its involvement to non-binding dialogues.
The Rohingya repatriation has been sluggish, and diplomatic negotiations ceaselessly failed to possess fruits. So, this will be great to miss the Rohingya disaster and hundreds and hundreds of refugees.
Nevertheless, closer ties with empathetic Asean contributors cherish Indonesia and Malaysia might perhaps perhaps bolster Bangladesh’s efforts for a dignified repatriation of Rohingya refugees.
Excessive compliance charges
Becoming a member of Asean necessitates adherence to its stringent membership criteria, which involves necessary policy modifications and infrastructure investments.
Compliance requires reforms in taxation, alternate regulations, and governance to align with Asean’s standards. Asean is on the path to earn zero, where Bangladesh is yet to begin paying price to such suggestions.
For Bangladesh, the necessary reforms will be resource-intensive, requiring substantial financial allocations and political will. And the industrial returns to such investment just isn’t any longer ensured.
Lack of infrastructure
Infrastructure readiness is one other website online where Bangladesh faces hurdles. Whereas initiatives cherish the Matarbari deep-sea port and enhancements to the Chattogram Port align with Asean’s focal level on connectivity, broader investments in transportation and logistics networks are very necessary.
Integration with projects cherish the Trans-Asian Railway (TAR) and Asian Freeway (AH) will seek files from of every financial commitments and environment pleasant execution. Without these upgrades, Bangladesh dangers being viewed as an unprepared candidate, additional delaying its membership potentialities.
Moreover, investing within the infrastructure will involve financial possibility, and connectivity thru Bangladesh also can merely no longer be successful either.
Elevated competition
Bangladeshi industries are going thru intense competition from established Asean economies equivalent to Vietnam, Thailand and Malaysia. These worldwide locations possess already tailored to Asean’s free alternate agreements and integrated offer chains, making them formidable opponents.
Moreover, worldwide locations cherish Vietnam, Malaysia and Indonesia possess a gargantuan younger, dynamic, highly-knowledgeable population which Bangladesh lacks. Without preparation, such competition might perhaps perhaps potentially drawback industries that are no longer yet full of life for begin-market dynamics.
Whereas challenges exist, alongside side compliance charges and diplomatic hurdles, the advantages of becoming a member of Asean are additionally great.
By aligning its policies, infrastructure, and diplomacy with Asean’s standards, Bangladesh can attach itself as a regional powerhouse within the impulsively evolving global economic system.
“We import more from these worldwide locations than we export to them. So, there is a excessive probability of our lack of income. If we resolve to gain zero-tariff entry to Asean, we resolve to present that to them in our market,” Dr Rahman stated.
“So, the total decisions wants to be proof-basically based completely. We want export oriented investment. We’re going to have the potential to possess to be conscious that no matter how pleasant diplomatic relatives are between worldwide locations, alternate negotiations are continuously more intense and aggressive,” he concluded.
