Bangladesh for more Saarc trade

Bangladesh Foreign Minister M Morshed Khan said there was a need to establish a new identity for South Asia by creating a pan-Asian organisation. He added that intra-Saarc trade should be increased from the present 3 per cent to 20 per cent.

Speaking at a Confederation of Indian Industry (CII) meet today, Khan called on the chamber to help in the "formation of a time-bound task force to increase intra-regional trade".

He also called for the formation of a common platform of standardisation, which he said would help intra-SAARC trade immensely. The need of the hour was to create a synergy between industry and politics so that the poor of the region, who comprised one-fifth of the global population, could benefit, he added.

On the disappointing pace of the South Asian Free Trade Agreement (Safta) frame-work agreement, Khan said the reason for the slow development was the legacy of mutual mistrust and fear of the unknown.

He said bigger steps were needed to be taken towards confidence building measures between India and Bangladesh, as the two countries cannot "divorce each other".

Meanwhile, Veena Sikri, High Commissioner of India to Bangladesh said bilateral ties between India and Bangladesh should be based on three pillars -- fair and transparent relationship, dynamic and active partnership between the governments and industry, and no politicisation of business relations.

The persistent huge trade imbalance that exists between both the countries is a strong impediment. To reduce this trade imbalance, Bangladesh demands easy and tariff free access to the Indian market on a non-reciprocal basis.

Arun Bharat Ram, past president, CII said the chamber had identified a five-point action plan for cooperation with Bangladesh. Firstly, he said, CII would open an office in Dhaka, which would work as a facilitator for investments and joint ventures.

Secondly, at the invitation of CII, the Executive Chairman, Board of Investments, Mahmudur Rahman, would be leading a team of leading businessmen from Bangladesh from June 14. Thirdly, Bangladesh should organise "Made in Bangladesh" exhibition in India.

Fourthly, CII would explore the possibilities of specialised services in the areas of environment management, energy conservation, technology and quality programmes to the Bangladeshi industry.

Lastly, CII would promote economic cooperation between the Northeast and Bangladesh.

CII would send a business delegation from the North Eastern States to Bangladesh within two months.