Bangladesh should immediately study the potential consequences of the mega trade deal, Trans-Pacific Partnership, on its economy, feel experts. As official Cecile Fruman, Director of Trade and Competitiveness, World Bank Group, points out, Bangladesh needs to understand the TPP. It also should analyse the consequences and risks associated with the deal.
Twelve Pacific Rim nations -- Canada, Chile, Japan, Mexico, the US, Australia, Vietnam, Malaysia, Brunei, Singapore, New Zealand and Peru - reached an agreement on the TPP in October 2015. As per the trade agreement it could reshape business practices across the world, potentially lowering tariffs for some goods and making foreign goods more readily available.
TPP countries represent 40 per cent of the global economy and a quarter of the trade. They are home to 800 million people, representing 12 per cent of global population. The deal may present challenges for least-developed countries. For instance, Bangladesh's exports may be affected by Vietnam's improved market access to the US.
Fruman has urged Bangladesh to diversify its industries from garments to others that will link and upgrade the global value chain.