Free Trade Agreement Bangladesh: Benefits and Impacts
In recent years, Bangladesh has undergone tremendous economic growth, and the government is keen on enhancing its global trade. A free trade agreement (FTA) is a crucial instrument in expanding Bangladesh`s international trade opportunities. In this article, we will discuss the benefits and impacts of the free trade agreement Bangladesh has signed with its partner countries.
What is a Free Trade Agreement?
A Free Trade Agreement (FTA) is a comprehensive agreement between two or more countries to eliminate or significantly reduce tariffs, taxes, and other trade barriers while maintaining certain trade policies and regulations. These agreements aim to boost trade, increase investment, and establish trade cooperation between the participating countries.
Benefits of Free Trade Agreement Bangladesh
The FTA Bangladesh has signed with its partner countries has several benefits, including:
1. Increased Foreign Investment: Free Trade Agreements provide favorable trading conditions for foreign investors in Bangladesh. By lowering trade barriers and eliminating tariffs, FTA partners become more attractive for foreign investors, leading to increased foreign investment.
2. Increased Market Access: FTAs help promote trade liberalization by removing trade barriers that hinder trade, such as quota restrictions and tariffs. This process helps provide Bangladesh with better market access, giving its exporters a competitive edge in global markets.
3. Enhanced Economic Growth: By eliminating trade barriers, FTAs improve economic efficiency, which helps to promote economic growth in Bangladesh. This ultimately leads to more job creation and increased national income.
4. Boosting Bangladesh`s Export Sector: Bangladesh can diversify its export base by securing better market access for its products through FTA agreements. Consequently, this helps to increase exports and enhance the quality of products.
Impacts of Free Trade Agreement Bangladesh
The FTA Bangladesh has signed with its partner countries has had several impacts, including:
1. Reduction in Trade deficit: The FTA agreement has helped to reduce the trade deficit by increasing exports of goods and services from Bangladesh.
2. Increase in the Quality of Products: FTA partners` better market access helps raise the quality of products in Bangladesh. This helps the country to be more competitive in global markets and generate more revenue.
3. Improvement in Competitiveness: The FTA has helped to improve Bangladesh`s competitiveness in the global market, by lowering trade barriers that hinder trade.
4. Increase in Employment Opportunities: The FTA has helped create more job opportunities in Bangladesh, primarily in export-oriented industries. This has led to a reduction in unemployment rates and improved living standards in the country.
The free trade agreement Bangladesh has signed with its partner countries has positively impacted the country`s economy, creating more job opportunities and boosting economic growth. FTAs are a crucial tool in promoting trade cooperation and investment among nations. The Bangladesh government should continue to explore and sign FTAs with other countries to enhance the country`s global trade opportunities.