China continues to remain Bangladesh’s most important bilateral trading partner. However, whilst in recent years imports from China have been rising at a fast pace, exports to China from Bangladesh remains rather insignificant. The present study explores the underlying factors driving Bangladesh’s growing bilateral trade deficit with China and comes up with concrete proposals to tap into the growing import market of China. The study investigates the feasibility of the recently-mooted bilateral Free Trade Agreement with China. By deploying appropriate analytical tools the study critically examines the rationale for such an agreement. The study argues in favour of a comprehensive economic partnership agreement to deepen multi-sectoral bilateral economic ties with China. This should include not only an FTA, but also an investment agreement, measures towards non-reciprocal, two track market access, concessional borrowings, currency cooperation, and attracting FDI from China in the Chinese Economic and Investment Zone in Bangladesh.
Authors: Mustafizur Rahman, Mahrab Al Rahman
Publication Period: December 2023