INDO-PACIFIC ECONOMIC FRAMEWORK (IPEF): PROSPECTS AND CHALLENGES FOR BANGLADESH

This article evaluates the Indo-Pacific Economic Framework (IPEF) through a Bangladesh perspective, exploring potential gains in supply-chain resilience, clean economy transition and anti-corruption standards, alongside risks related to compliance burdens and geopolitical entanglement. The abstract explains IPEF’s modular design across four pillars—trade (rules-focused), supply chains, clean economy and fair economy—and why this design could allow selective participation by partners. Bangladesh’s export-led model, pending LDC graduation and infrastructure push position it to benefit from deeper integration with Indo-Pacific standards and logistics. Yet challenges loom: complex labour, environment and data provisions may strain regulatory capacity; absence of traditional market access could limit near-term trade gains; and alignment choices must be balanced with existing ties to China, India, the EU and RCEP members. The paper argues for a pragmatic, interest-based approach: join pillars that unlock technology transfer and investment; insist on technical assistance for standards adoption; and safeguard policy space for industrialisation. It concludes that treated as a toolbox—not a bloc—IPEF can complement Bangladesh’s diversification and upgrading agenda.

The body starts by mapping IPEF’s origins and objectives, contrasting it with classic FTAs. It then assesses Bangladesh’s stakes. In supply chains, membership could attract investment into pharmaceuticals, electronics assembly and green textiles if Bangladesh can demonstrate compliance, traceability and rapid customs clearance. The clean economy pillar aligns with national priorities on renewable energy, energy efficiency and methane reduction, but requires bankable project pipelines and credible MRV. The fair economy pillar’s anti-corruption and tax transparency measures could boost investor confidence if matched by domestic reforms in procurement and beneficial ownership disclosure. The article proposes a three-step strategy: (i) regulatory readiness—conduct a whole-of-government gap analysis on labour, environment, data and competition policy; (ii) logistics acceleration—fast-track port digitisation, bonded logistics parks and authorised economic operator schemes; (iii) investment facilitation—create an IPEF Project Preparation Facility to package PPP-ready deals. It stresses diplomacy: coordinate stances with BIMSTEC and IORA partners, preserve autonomy by avoiding exclusive commitments, and maintain compatibility with EU due-diligence regimes. Finally, it outlines metrics for success: FDI inflows into targeted sectors, time-to-clear customs, renewable capacity additions, and governance scores. The article closes that Bangladesh should approach IPEF as a platform to upgrade capabilities, not merely as a forum for declarations.