Centre for Policy Dialogue (CPD) organised a dialogue on Advancing Bangladesh-India Economic Cooperation: Modalities and Challenges on 4 March 2010 at the CIRDAP Auditorium in Dhaka with Professor Rehman Sobhan, Chairman, CPD, in the chair. Dr Dipu Moni, MP, Hon’ble Minister for Foreign Affairs, graced the occasion as the Chief Guest while Dr Masihur Rahman, Economic Affairs Advisor to the Hon’ble Prime Minister and Mr Reaz Rahman, Former State Minister for Foreign Affairs and Member, Advisory Council of the Chairperson, BNP were present as the Special Guest and the Guest of Honour respectively.
CPD Executive Director Professor Mustafizur Rahman and Dr M Rahmatullah, Former Director, Transport, UN-ESCAP, Bangkok made two presentations at the dialogue.
Mustafizur Rahman, in his presentation on Trade-Related Issues in Bangladesh-India Joint Communiqué: Maximising Bangladesh’s Benefits, and Strategies for Future, highlighted the economic issues in the communiqué, tasks for Bangladesh to design follow-up actions in line with the agreements and recent trends in bilateral trade with India, modalities to reduce Indian sensitive list and address the non-tariff barriers (NTBs) to trade and potentials for Bangladesh’s trade with India’s north-eastern states.
He stated that north-eastern region of India presents good opportunity for Bangladesh’s export. These opportunities could be best realised if they are economically developed at a faster pace and Bangladesh facilitates this process through various avenues of deepening cooperation with India. CPD Executive Director said India should be pursued to take out items from the sensitive list as revenue loss for her would be very insignificant even if all Bangladeshi goods get duty-free access. He noted that a comprehensive mechanism is needed to deal with the NTBs. Mutual recognition of standard and testing institutions could be a way forward in this regard, he said.
The highlights of the second presentation on Regional Connectivity for Trading in Transport Services by Dr M Rahmatullah, included opportunities for Bangladesh to trade in transport services, learning from experiences of other countries, regional connectivity, and implications of recent joint communiqué signed by Bangladesh and India. He mentioned that providing connectivity and use of port facilities could open up opportunities for export services by Bangladesh. He pointed out that prospects for regional patronage for a deep-sea port in Bangladesh would increase manifold if connectivity to neighbouring countries is provided.
The speakers at the dialogue laid emphasis on strengthening the relations not only with India, but also with Nepal and Bhutan. They observed that India needed initiatives to settle issues like border, maritime boundary, water sharing and energy cooperation as Bangladesh was trying to develop road communication with India.
The Foreign Minister observed that the recent Bangladesh-India initiatives are aimed at deepening the relations between the two countries and resolving the unsettled issues. She further said that such initiatives are not only confined to strengthening bilateral ties but also to fostering cooperation in the region by the inclusion of Nepal and Bhutan. These have been reflected in the joint communiqué and it would act as the basis for moving forward all relevant issues, she added. The Foreign Minister urged the opposition parties to come up with constructive criticism, and help the government towards successful implementation of the communiqué.
Former State Minister for Foreign Affairs Reaz Rahman referred to the huge trade gap with India. He expressed the view that India would benefit further if she is allowed to use Bangladesh’s territory for movement of goods and services. Bangladesh’s gain from such arrangement will not be significant, he claimed. Masihur Rahman underscored the need for working on justifying the reasons for import from India and ascertaining the possibilities for export to India. He termed the joint communiqué an important step towards strengthening ties with India upholding the interests of Bangladesh.
Former Finance Minister M Syeduzzaman felt the necessity of forming a task force comprising Bangladesh, India, Nepal and Bhutan, which would expedite the issue of enhancing the regional ties. MCCI President Anis Ud Dowla highlighted the urgency for regional cooperation in the present context and expressed the view that it required a shift in the mindset. The negotiations need to be done in such a way that both the parties can have a win-win situation. Fazlul Azim MP, Commmerce Secretary Golam Hossain and FBCCI Advisor Manzur Ahmed also took part in the discussion.
Papers Presented
Trade‐Related Issues in the Bangladesh‐India Joint Communiqué: Maximising Bangladesh’s Benefits, and Strategies for Future
Professor Mustafizur Rahman
Executive Director, CPD
Regional Connectivity for Trading in Transport Services
Dr M Rahmatullah
Former Director, Transport, UN-ESCAP, Bangkok