If the Trans-Pacific Partnership (TPP) deal comes through, Bangladesh may lose its competitiveness in the apparel trade. TPP would create a preferential trade zone between 11 countries, including Vietnam, Bangladesh's direct competitor in the global apparel market, and the US, Bangladesh’s single largest garment export destination.

Vietnam will be a big beneficiary from the deal. At present, Bangladesh pays 15.62 per cent duty for its garment exports to the US whereas Vietnam pays 8.38 per cent. If the TPP is signed, garment exports from Vietnam will enter the American market completely duty-free. If Bangladesh had been a strong player in raw material exports such as yarn, fabrics and fibers, it would have benefited from the deal. But Bangladesh does not export garment raw materials.

Bangladesh’s garment exports to other TPP nations like Canada, Japan, New Zealand, Australia and Chile might not be hampered, as it already enjoys zero-duty benefit to those countries. In the meanwhile the average tariff of Bangladesh is 55 per cent, which is too high for openness of the country's business.

TPP is a comprehensive agreement that will open markets, set high-standard trade rules and address 21st-century issues in the global economy. In so doing, it will promote jobs and growth in the US and across the Asia Pacific region.