Bangladesh in the Indo-Pacific Strategy: A Key Player in Regional Stability and Trade

Written by:
AKM SAYEDAD HOSSAIN
Executive Director
National Institute of Global Studies (NIGS),
A Bangladesh-based think tank
https://nationalinstituteofglobalstudies.com

Introduction

The Indo-Pacific region has emerged as the epicenter of global economic and strategic competition, with the United States, China, and regional players vying for influence. As the world’s fastest-growing economic corridor, the Indo-Pacific holds immense geopolitical and economic significance. Bangladesh, strategically located at the heart of South Asia, plays a crucial role in shaping regional trade, maritime security, and diplomatic balance. The U.S. Indo-Pacific Strategy (IPS) seeks to enhance economic integration, safeguard maritime trade routes, and ensure regional stability, making Bangladesh a vital player in this framework.

This article delves into Bangladesh’s evolving role in the Indo-Pacific Strategy, focusing on its economic potential, security imperatives, and geopolitical balancing act amid the rising U.S.-China rivalry.

Bangladesh’s Growing Economic Significance in the Indo-Pacific

Bangladesh has rapidly ascended as an economic powerhouse in South Asia, boasting an annual GDP growth rate of around 6%, a thriving export-driven economy, and a strategic location along the Bay of Bengal. As the world’s second-largest exporter of ready-made garments (RMG) and an emerging hub for manufacturing, Bangladesh is integral to the Indo-Pacific’s supply chain dynamics.

Key Economic Contributions to the Indo-Pacific Strategy:

1. Trade and Investment: Bangladesh’s economic ties with the U.S. and regional players like Japan, India, and ASEAN nations are strengthening. The U.S. remains one of Bangladesh’s top trading partners, with over $10 billion in annual bilateral trade. The IPS aims to facilitate greater market access and investments in critical sectors like infrastructure, digital economy, and green energy.
2. Blue Economy and Maritime Trade: Bangladesh’s vast maritime territory in the Bay of Bengal presents opportunities for deep-sea port development, offshore energy exploration, and sustainable fisheries. The U.S. supports Bangladesh in leveraging its maritime resources while countering illegal, unreported, and unregulated (IUU) fishing activities.
3. Infrastructure Development and Connectivity: Bangladesh is part of several regional connectivity projects, including the Indo-Pacific Economic Framework (IPEF), the Belt and Road Initiative (BRI), and the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor. The U.S. seeks to strengthen infrastructure development in Bangladesh as a counterbalance to China’s investments under the BRI.

Maritime Security: A Pillar of the U.S. Indo-Pacific Strategy

With 90% of global trade passing through sea routes, maritime security is a cornerstone of the Indo-Pacific Strategy. Bangladesh, with its 710-km coastline and pivotal location near the Malacca Strait, plays a significant role in maintaining maritime stability.

Bangladesh’s Role in Indo-Pacific Maritime Security:

1. Countering Maritime Threats: The Bay of Bengal faces threats from piracy, illegal fishing, and drug trafficking. Bangladesh has enhanced its naval capabilities and partnered with the U.S. Indo-Pacific Command (INDOPACOM) for joint maritime exercises and capacity building.
2. Freedom of Navigation and Rule of Law: Bangladesh upholds the principles of the United Nations Convention on the Law of the Sea (UNCLOS) and actively engages in regional maritime forums, ensuring a rules-based order in the Indo-Pacific.
3. Naval Modernization and Defense Partnerships: Bangladesh Navy has expanded its fleet with modern frigates, submarines, and surveillance technology. The U.S. has supported Bangladesh with security assistance, including the transfer of coast guard cutters and joint training programs.

Geopolitical Dynamics: Balancing Between the U.S., China, and India

Bangladesh’s strategic importance in the Indo-Pacific places it at the center of great-power competition. Dhaka maintains a delicate balance between the U.S., China, and India while prioritizing its national interests.

Key Geopolitical Considerations:

1. U.S.-Bangladesh Relations:
   • The U.S. views Bangladesh as a key partner in ensuring a free and open Indo-Pacific.
   • Engagement through initiatives like the Indo-Pacific Economic Framework (IPEF) and Quadrilateral Security Dialogue (QUAD) underscores Bangladesh’s role in regional stability.
2. China’s Influence:
   • China is Bangladesh’s largest trading partner and a significant investor in infrastructure projects, including ports and energy sectors.
   • However, Bangladesh remains cautious about falling into excessive debt under China’s BRI while seeking diversified economic partnerships.
3. India’s Strategic Interests:
   • India and Bangladesh share strong economic and security ties, cooperating on border security, energy trade, and regional connectivity.
   • Bangladesh’s participation in BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) strengthens its role in regional economic integration.
4. ASEAN and Japan’s Engagement:
   • Japan has emerged as a major investor in Bangladesh’s infrastructure and economic zones.
   • Bangladesh’s growing ties with ASEAN nations reinforce its position in the broader Indo-Pacific framework.

Challenges and Opportunities for Bangladesh in the Indo-Pacific Strategy

While Bangladesh holds significant potential in the Indo-Pacific, several challenges need to be addressed:

Challenges:

• Strategic Ambiguity: Bangladesh has yet to formally align with the Indo-Pacific Strategy due to concerns over regional tensions.
• Economic Dependence on China: While China’s investments boost infrastructure development, dependency on Beijing may limit Dhaka’s strategic autonomy.
• Security Threats: Rising geopolitical tensions in the Indo-Pacific, including the South China Sea dispute and military build-ups, pose security risks.

Opportunities:

• Diversified Economic Partnerships: Engaging with the U.S., Japan, and ASEAN reduces reliance on any single power.
• Maritime Diplomacy: Strengthening naval capabilities and participating in regional security frameworks enhance Bangladesh’s strategic relevance.
• Infrastructure Development: Leveraging U.S. investments and regional connectivity initiatives will boost Bangladesh’s long-term economic growth.

Bangladesh’s role in the Indo-Pacific Strategy is becoming increasingly significant as the region undergoes major geopolitical and economic transformations. With a rapidly growing economy, strategic maritime position, and a balanced foreign policy, Bangladesh is poised to be a key player in regional stability and trade.

By engaging in diplomatic dialogues, strengthening security partnerships, and diversifying economic alliances, Bangladesh can navigate the complexities of the Indo-Pacific and emerge as a pivotal force in shaping the future of the region. The U.S., recognizing Bangladesh’s potential, must continue to support Dhaka’s economic and security initiatives while ensuring that Indo-Pacific cooperation remains inclusive, sustainable, and beneficial for all stakeholders.