BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

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

Author: Segufta Hossain

DOI Link: https://www.doi.org/10.56888/BIISSj2024v45n3a4

ABSTRACT

The Indo-Pacific Economic Framework, a US-led initiative, aims to enhance economic engagement in the region. In order to sustain economic growth, Bangladesh must enhance its international engagement with both current and new markets, as it will encounter economic challenges following its graduation from the LDC category. Participating in such an international forum could be advantageous for Bangladesh, but it also gives rise to a geopolitical debate. Although the United States actively supports Bangladesh's inclusion, China has already voiced its reservations. In this backdrop, the objective of this research is to analyse the potential advantages and challenges that this framework may bring for Bangladesh. Adopting a qualitative methodology, this paper reveals that it is premature to evaluate the potential advantages and shortcomings. This study finds that IPEF does not promise any trade facilitation directly, through pillar two, it will help to foster trade, attract investment and promote exports of the member countries. Therefore, it would be beneficial for Bangladesh to join this initiative. Bangladesh should closely observe the development of IPEF and critically analyse each step. Whatever decision the government takes, it should be guided by a comprehensive understanding of the implications, both at a domestic and international levels.