NEED FOR INDIA-BANGLADESH ECONOMIC COOPERATION DEAL: CUTS

if India needs exploring partnership opportunities to navigate the changing trade dynamics effectively.

- NIVEDITA MUKHERJEE

Even as Bangladesh and Japan move forward with the signing of an Economic Partnership Agreement (EPA) by December 2025, aiming to strengthen bilateral economic relations and secure duty-free market access for Bangladesh, a report by CUTS International (Consumer Unity & Trust Society) on ‘Preferential Trade Agreements and India’ suggests that India should exercise caution and closely monitor the progress of the Bangladesh-Japan EPA negotiations. As Bangladesh seeks to expand its trade relations with Japan, India should assess the potential impact on its own trade interests and competitiveness in the region, says the report, and suggests India may need to consider strengthening its existing trade ties, diversifying export markets, enhancing competitiveness, and exploring partnership opportunities to navigate the changing trade dynamics effectively.

The CUTS quarterly dossier selectively covers existing and/or potential PTAs between India’s competitors, particularly those that can have significant trade diversion, affecting India’s exports to those countries. India and Bangladesh have discussed preparations to start talks for a free trade agreement between the two countries to promote economic ties. It was discussed during an official-level meeting of the Joint Working Group on Trade (JWG) between India and Bangladesh, which was held in Dhaka in September 2023.