PLURILATERAL TRADE AGREEMENTS AND THE IMPACT ON LDCs  TO PARTICIPATE OR NOT TO PARTICIPATE?

This case study examines Bangladesh's position regarding plurilateral trade agreements (PTAs) as it prepares to graduate from least-developed country (LDC) status to middle-income country (MIC) status by 2024. While the government maintains a cautious, neutral stance, the private sector expresses more urgency to join certain agreements to prepare for the loss of LDC trade preferences. The document analyzes the potential impacts of four specific plurilaterals: the Trade in Services Agreement (TiSA), the Environmental Goods Agreement (EGA), the Government Procurement Agreement (GPA), and the Information Technology Agreement II (ITA-II).

• Bangladesh is the world's second largest exporter of ready-made garments (RMG) after China, a growth driven largely by duty-free quota-free (DFQF) market access granted to least-developed countries (LDCs).
• Bangladesh is scheduled to transition out of LDC status by 2024, though it will retain LDC preferential treatment until 2027. This graduation is viewed as a significant challenge by the business community, who argue there is no time to waste in building supply-side capacity and forging new ties, whereas government and academic stakeholders view it as a more distant event.
• The government of Bangladesh currently maintains a neutral stance toward plurilateral trade agreements, citing risks such as conforming to agendas better suited for developed nations and a lack of internal capacity to manage the administrative burdens of such agreements.
• GTAP CGE modelling indicates that Bangladesh would derive the most significant economic benefit from joining the Government Procurement Agreement (GPA), with a projected aggregate net welfare gain of $1,097.6 million compared to $75 million if it does not join.
• Modelling for the Environmental Goods Agreement (EGA) suggests marginal benefits, with a net welfare gain of $2,211.8 million if joined versus $1,239.6 million if not. However, joining the EGA is projected to lead to a decrease in the volume and value of exports.
• The Trade in Services Agreement (TiSA) and Information Technology Agreement II (ITA-II) are projected to offer the lowest benefits. TiSA would provide a marginal net welfare gain of $16.2 million if joined, while ITA-II could result in a net welfare loss of -$2.9 million if joined.

APA

South African Institute of International Affairs (2018). PLURILATERAL TRADE AGREEMENTS AND THE IMPACT ON LDCs  TO PARTICIPATE OR NOT TO PARTICIPATE? https://saiia.org.za/wp-content/uploads/2018/03/saia_spr_plurilaterals_Bangladesh-Case-Study_20180306.pdf

Chicago

South African Institute of International Affairs. PLURILATERAL TRADE AGREEMENTS AND THE IMPACT ON LDCs  TO PARTICIPATE OR NOT TO PARTICIPATE? 2018. https://saiia.org.za/wp-content/uploads/2018/03/saia_spr_plurilaterals_Bangladesh-Case-Study_20180306.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=PLURILATERAL TRADE AGREEMENTS AND THE IMPACT ON LDCs  TO PARTICIPATE OR NOT TO PARTICIPATE? |date=February 2018 |url=https://saiia.org.za/wp-content/uploads/2018/03/saia_spr_plurilaterals_Bangladesh-Case-Study_20180306.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2018plurilateral, author = {{South African Institute of International Affairs}}, title = {{PLURILATERAL TRADE AGREEMENTS AND THE IMPACT ON LDCs  TO PARTICIPATE OR NOT TO PARTICIPATE?}}, institution = {South African Institute of International Affairs}, year = {2018}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2018/03/saia_spr_plurilaterals_Bangladesh-Case-Study_20180306.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }