Developments in forming alliances among regional and global economic partners have emerged very strongly in recent times. The Tans Pacific Partnership (TPP), Regional Comprehensive Economic Partnership (RCEP) and the Asian Infrastructure Investment Bank (AIIB) are notable not just as major alliances but more importantly for the change they are likely to cause to global economy and commerce in the days ahead. The Trans-Pacific Partnership (TPP) is a proposed trade agreement among twelve Pacific Rim countries concerning a variety of matters of economic policy, about which agreement was reached on October 5, 2015 after 8 years of negotiations. Member countries of the TPP are: Brunei, Chile, Newzealand, Singapore, Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States and Vietnam. Total population of TPP countries is 11 per cent of the global population. Total GDP of TPP countries is US$ 27.64 trillion. US’s total services and ICT exports to TPP countries are likely to be US$ 172 billion and US$ 110.2 billion respectively. So from the trade point of view this alliance is very important for the USA. Among other things, the TPP Agreements contains measures to lower trade barriers such as tariffs and promote innovation, economic growth and development, and to support the creation and retention of jobs. The Regional Comprehensive Economic Partnership (RCEP) is a FTA negotiation that has been developed among 16 countries: the 10 Members of ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam) and six other countries with which ASEAN has Free Trade Agreements (FTAs) – Australia, China, India, Japan, Korea, and New Zealand. In relation to RCEP these six non-ASEAN countries are known as the ASEAN Free Trade Partners (AFPs). The participants in the RCEP FTA negotiations have a total population of over 3 billion people and a trade share estimated at around 27 per cent of global trade (based on 2012 WTO figures), covering GDP of around $US21 trillion (2013 IMF figures). Compared with TPP, population of RCEP is much more but the economy less resourceful. China is a fast growing country and more than a decade it has been the virtual driving force of the world economy. India has enough scope for growth. Taking all these factors into consideration, RCEP is likely to be a strong contestant among the economic alliances of the globe. The Asian Infrastructure Investment Bank (AIIB) is a proposed international financial institution which is focused on supporting infrastructure building in the Asia-Pacific region. The bank was proposed as an initiative by the government of China and supported by 37 regional and 20 non-regional members Prospective Founding Members, 52 of which have signed the Articles of Agreement that form the legal basis for the proposed bank. The bank will start operation after the agreement enters into force, which requires ratifications from 10 member states holding a total number of 50 per cent of the initial subscriptions of the Authorised Capital. AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development. Bank (ADB), which are regarded as dominated by developed countries like the United States. The bank was proposed by China in 2013, and the initiative got launched at a ceremony in Beijing in October 2014. The Asian Development Bank Institute published a report in 2010 which said that the region requires $8 trillion to be invested from 2010 to 2020 in infrastructure for the region to continue economic development. In a 2014 editorial, The Guardian newspaper wrote that the new bank could allow Chinese capital to finance these projects and allow it a greater role to play in the economic development of the region commensurate with its growing economic and political clout. But until March 2015, China in the ADB has only 5.47 per cent voting right, while Japan and US have a combined 26 per cent voting right (13 per cent each) with a share in subscribed capital of 15.7 per cent and 15.6 per cent respectively. Dominance by both countries and slow reforms underlie China’s wish to establish the AIIB, while both countries worry about China’s increasing influence. Observers believe that once in operation, these three alliances will have a huge impact on global trade, economy and finance. Bangladesh, as a major exporter of apparels to the United States, has reasons to be concerned about the inclusion of Vietnam in the TPP. The tariff facilities that Vietnam is likely to enjoy as a member of the TPP will give it an edge over Bangladesh and Bangladesh may be adversely affected. However, it still remains a speculation. But for Bangladesh to ensure its market access in the US and the European markets, it should be up and doing to in expanding its production base as well as marketing avenues.
