Illustration: Xia Qing/GT

Bangladesh is expected to formally apply for membership of the Regional Comprehensive Economic Partnership (RCEP), the world's largest multilateral free trade bloc, this week, according to its commerce ministry. Ministry officials said the country is also preparing to negotiate free trade agreements with several countries, Business Standard reported on Wednesday.

There are also reports that India has expressed reservations about Bangladesh's participation in the RCEP. While India continues to be an important trading partner, it is essential for Bangladesh to diversify its trade landscape and create broader investment opportunities in order to boost its economy. The RCEP presents a valuable opportunity to meet these needs.

Bangladesh is also in discussions about a comprehensive economic partnership agreement (CEPA) with India, according to the report. As trade facilitation agreements, joining the RCEP and CEPA will expand trade cooperation among participating countries and bring mutual benefits to their economies.

The purpose of deepening economic and trade cooperation is to promote the common development and prosperity of the economies of participating parties. Broader and freer trade cooperation is beneficial for these economies to complement each other and better leverage their respective comparative advantages. 

Furthermore, the integration of industrial chains among participating parties is essential to truly support each country's industrial development plans. Conversely, artificial disruptions and trade barriers will only cause all economies to lose more development opportunities, making it difficult to fully realize their development potential.

The RCEP is a milestone in the construction of economic integration in the Asia-Pacific region and serves as a vivid example of shared development opportunities among regional countries. 

Since its implementation, trade exchanges among member countries have become closer, stabilizing and driving the growth of trade. This region remains a global hotspot for investment. The expansion and high-quality implementation of multilateral free trade brings more benefits to the development of regional economies.

Bangladesh's interest in joining the RCEP is driven not only by short-term economic issues but also by a vision for long-term development. According to commerce ministry officials of Bangladesh, when Bangladesh opted to join the RCEP in September last year, the decision was based on extensive considerations, Business Standard reported. 

The Asia-Pacific region, where most of the countries and regions are participating in the RCEP, is poised to become the most dynamic region of the global economy, making it logical for Bangladesh to connect with these economies.

If negotiations with the RCEP member economies proceed smoothly, joining the RCEP is anticipated to significantly enhance trade facilitation for Bangladesh. The RCEP is a free trade agreement encompassing the Asia-Pacific region, designed to promote trade and investment among its member economies. Becoming part of this diverse trade platform could have a profound impact on Bangladesh's economy.

Membership in the RCEP will give Bangladesh expanded market access, particularly to major economies such as China, Japan, South Korea and members of ASEAN. The 15 members of the RCEP represent nearly 30 percent of the global population. This membership is expected to boost Bangladesh's exports in key sectors, including textiles, garments, pharmaceuticals and other goods.

In addition, joining the RCEP will significantly improve Bangladesh's connectivity to regional value chains. The agreement has already demonstrated its effectiveness in integrating supply chains within the region, which will enable Bangladesh to better align with regional production networks and enhance the value of its products.

The RCEP framework also facilitates investment flows within the region, potentially attracting increased foreign investment to Bangladesh, particularly in the manufacturing and infrastructure sectors. By expanding trade and investment opportunities, Bangladesh's economic growth potential will be amplified, leading to job creation and improved living standards for its people.

While relying on a single market can pose risks, expanding trade with the member countries of the RCEP means that Bangladesh can achieve market diversification, thereby enhancing the resilience of its economy.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn