Implementation
of SAARC agendas
has been slow,
but the regional
cooperation body
is moving in a
positive direction.
Now we are hopeful
about progress.
The major significance
of the last summit
was that the heads
of states put
emphasis on intra-regional
connectivity:
physical, economic
and people to
people connectivity.
They agreed in
principle to the
vision of a South
Asian community
where there will
be smooth flow
of goods, services,
people, technologies,
knowledge, capital,
culture and ideas.
If such a vision
is implemented,
we think, it may
bring a blessing
for all of us.
Our export basket
will increase
due to free movement
of goods, services,
peoples, technologies
and capital from
regional and other
countries. Negotiation
power of SAARC
countries will
also increase
in WTO.
We all know that
many regions have
created effective
cooperation platforms:
European countries
have formed European
Union and U.S.A
formed North American
Free Trade Agreement
(NAFTA). In this
context we think
that at present
a south Asian
Community is essential
for us. It could
remove poverty
from this region
and increase our
intra-regional
trade by increasing
economic activities
and creating employment
opportunities.
Intra-regional
trade in E.U.
is about 55% of
their total trade
and in ASEAN about
22%. But our intra-regional
trade is only
5%.
Many countries
like Japan, Singapore
and Malaysia had
little to export
initially. But
with an open economic
policy and hard
work, they developed
their economies.
We may also produce
tradable goods
by importing intermediate
goods and raw
materials from
abroad if there
is a market.
According to Goldman
Sachs BRIC report,
China and India
will continue
to grow over the
next three decades
and by 2035 become
the second and
third largest
economies of the
world respectively.
India's global
trade in goods
and services almost
trebled in 2006
from US$100 billion
in 2001. So as
a neighboring
country we will
have a lot of
opportunities
to grow our economy
if we are integrated
with regional
countries.
But mere agreement
is not a sufficient
condition for
economic benefit.
Its effective
implementation
with a positive
mindset from all
sides and earnest
efforts to break
new grounds will
produce tangible
benefits for all.
There are already
some positive
developments.
In FY 2005-06
Bangladesh export
to SAARC countries
increased to US$
312.37 million
from US$ 224.22
million in FY
2004-05 whereas
import decreased
to US$ 2,039.80
million from US$
2203.80 million
over the same
period.
India is much
ahead of Bangladesh
in respect of
technologies in
the areas of agriculture,
industry and service.
There are many
prospective sectors
in Bangladesh
where joint investment
and technology
transfer are possible.
In this connection,
let me point out
that a motorcycle
company of Vietnam
offered to invest
in a joint-venture
agreement to manufacture
motorbikes in
Bangladesh. If
the regional countries
invest in such
projects we can
produce or purchase
from other SAARC
countries motorbikes
at lower prices
and a lot of foreign
currency can be
saved because
we import motorbikes
from countries
far way, at higher
prices and high
transport costs.
There may be other
areas of cooperation,
as well. Bangladesh
has been suffering
from power crisis.
Most markets and
shops are closed
at 7.00 p.m. This
has decreased
economic activities
in the country.
Joint investment
and cooperation
in the power sector
involving the
regional countries
can solve this
problem.
Appropriate government
policies and support
should be provided
so that Bangladeshi
industries can
be competitive
in SAARC markets.
Here are some
of our recommendations:
Remove all forms
of non-tariff
and para-tariff
barriers in other
SAARC countries
so that Bangladeshi
goods can be exported
to those countries.
Organize Bangladesh's
single country
trade fair in
SAARC countries.
Strengthen Bangladesh's
mission for economic
diplomacy in SAARC
countries.
Allow duty-free
imports of raw
materials from
SAARC states.
Develop Mongla
port to make it
a hub of trade
activities with
India and other
SAARC countries,
and at the same
time, Chttagong
port should be
modernized for
quicker delivery
of goods.
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