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Implications of TTIP and TPP on Bangladesh and Nepal

Author

Listed:
  • Amin, Mohammed Nafeez Al

    (Southeast University)

Abstract

The Transatlantic Trade and Investment Partnership (TTIP) and the Transpacific Partnership (TPP) could the biggest trade deal in the history. The EU and the USA are in the process of, or contemplating, to sign Free Trade Agreements (FTAs) under TTIP and TPP. As, the European Union (EU) and the USA are the biggest trading partner of all the South Asian countries, such preferential tariff arrangements could lead to significant erosion of preferences enjoyed currently by the South Asian Developing Countries such as, Bangladesh and Nepal. In this backdrop, the main objective of the present study is to investigate the potential economic impacts of tariff eliminations under TPP and TTIP on various macro and trade variables of Bangladesh and Nepal. In this context, a standard computable general equilibrium (CGE) analysis has been adopted by using the Global Trade Analysis Project (GTAP) model and database to explore the aggregate impact as well as sectoral implications. The analysis evinces that complete integration in terms of tariff elimination under these two mega deals, Bangladesh and Nepal could face tremendous negative impact on their economy. The analysis also suggests that Bangladesh and Nepal may consider joining to the TPP to minimize the negative economic impact due to the mentioned deals.

Suggested Citation

  • Amin, Mohammed Nafeez Al, 2015. "Implications of TTIP and TPP on Bangladesh and Nepal," Asian Business Review, Asian Business Consortium, vol. 5(1), pages 7-12.
    • Handle: RePEc:ris:asbure:0082
    as

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    References listed on IDEAS

    as
    1. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    2. Chile, Love M. & Talukder, Dayal, 2014. "The Paradox of Agricultural Trade Liberalization in Bangladesh and Tanzania," American Journal of Trade and Policy, Asian Business Consortium, vol. 1(1), pages 23-31.
    3. Gasiorek, Michael & Holmes, Peter & Rollo, Jim & Wang, Zhenkun & Gonzalez, Javier Lopez & Parra, Maximiliano Mendez & Maliszewska, Maryla & Paczynski, Wojtek & Cirera, Xavier & Willenbockel, Dirk & Fo, 2010. "Mid-term Evaluation of the EU’s Generalised System of Preferences," Conference papers 331999, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    More about this item

    Keywords

    TPP; TTIP; Bangladesh; Nepal; GTAP; CGE;
    All these keywords.

    JEL classification:

    • B17 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - International Trade and Finance

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