Experts urge for greater trade integration in SA

Dhaka, Bangladesh, Apr. 7: Businesspersons, civil society members and government officials of BBIN, a SAARC sub-regional group that includes Bangladesh, Bhutan, India and Nepal, have called for greater regional trade integration in the South Asia, and urged the four nations for the increased movement of people and goods across the border.

 Saying that it was impossible for any neighbour to grow alone, the experts underscored that need to minimize obstacles in trade in the sub-region as the custom clearance issues were paramount.

“We had tough time in the region because of mistrust and division. Now, every country in the region must work to ensure that the supply chain is not broken because if the trade supply-chain is broken, it takes decades to put it on track,” said Hedayetullah Al Mamoon, senior secretary of Ministry of Commerce, Bangladesh.

He expressed Bangladesh’s desire to improve trade relations with the regional partners.

Selim Rehman, professor of Economics at the Dhaka University, suggested identifying the non-tariff measures (NTMs) that were hindering trade in the region and the institutions relevant for the NTMs, and work with the exporters and their associations to improve the trade relations and increase intra-regional trade.

He warned that the downward trajectory of Indian import from the region and upward trend of Nepalese and Bhutanese export to India could have severe repercussions in the economy of smaller neighbours.

“Bangladesh, Bhutan and Nepal have become more region-oriented. However, Nepal and Bhutan’s export trade is highly concentrated to India, 59.5 per cent ad 69 per cent respectively,” said Rehman.

Pritam Benerjee, senior director corporate policy (South Asia) of Deutsche Post DHL, urged the four nations to implement the BBIN Motor Vehicle Agreement at the earliest to ensure the smooth movement of goods to boost the trade.

After the agreement couldn’t be endorsed at the SAARC level, the four countries signed the Motor Vehicle Agreement in June last year. The agreement aims at allowing seamless movement of vehicles across BBIN regional borders.

Separate protocols covering the administration, registration, regulation and monitoring of temporary movement of different categories of vehicles are being developed and finalized by the governments of the four countries.

“Our region is lagging behind in developing better connectivity. Once the BBIN connectivity is created well, the region can be connected to the South East Asia through IMT (India-Myanmar-Thailand) road network,” Benerjee said.

He said that cross-border vehicle movement was very common all over the globe whereas the South Asia and South East Asia had been so far afraid to endorse it.

He urged the governments of the four nations to improve the infrastructure at the borders and highways.

Sonam Tashi from Ministry of Economic Affairs, Bhutan, underscored the need to address challenges at the bilateral level first before trying to improve the things at the sub-regional level.

Savithri Lakshmanan, Director representing India at the SAARC Secretariat, Kathmandu, said that the region needed some institutions where the nations could share knowledge and urged to create such institutions.

Kanak Mani Dixit, editor of Himal South Asia, suggested that Bhutan, Nepal and Bangladesh to integrate their trade with the bordering Indian states.

Zubair Ahmed Malik, Human Capacity Development Working Group of ASSRC-Trade Promotion Network (SAARC-TPN), stated that the change of mindset was required for greater integration in the region.

The SAARC-TPN aims at promoting intra-regional trade by creating strong linkages among network members, enterprises and small and medium industries. Its objectives also include delivering recommendation for trade facilitation and reduction of trade barriers.
The programme was organized by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka in collaboration with the SAARC Chambers of Commerce and Industry and The Asia Foundation.