Sri Lanka and Bangladesh are considering joining the Regional Comprehensive Economic Partnership (RCEP) after India’s withdrawal from the trade agreement in 2019.
Recent update on RCEP
- Application from Sri Lanka: In its application, Sri Lanka requests cooperation from China, Malaysia, Indonesia, Japan, and Thailand in order to become a member of the RCEP.
- Ultimate Decision on RCEP Participation by Bangladesh: Following its elections in January 2024, Bangladesh is anticipated to make a definitive decision on RCEP participation.
India’s Stance on RCEP
- Due to worries about the mobility of services, a possible influx of Chinese goods, and opposition from small enterprises and indigenous farmers, India withdrew from the RCEP negotiations in 2019.
- No Return Indication: India has not shown any indication that it will reevaluate its choice to leave the RCEP.
Reasons for Sri Lanka and Bangladesh’s Interest
- Learning from Crisis: Sri Lanka aims to expand its market and boost competitiveness because it recognizes the value of regional markets in times of crisis.
- As Bangladesh prepares to leave the Least Developed Countries list in 2026, participation in the Regional Comprehensive Economic Partnership (RCEP) might mitigate possible export losses and streamline free trade agreements.