Bangladesh and India are going to open negotiations on signing the proposed Comprehensive Economic Partnership Agreement (CEPA) soon, says the Indian envoy while unveiling umpteen sub-regional integration plans.
Addressing a seminar on Multi-layered connectivity in the Bay of Bengal, jointly organised by the Centre for Policy Dialogue (CPD) and the Japanese Embassy in Dhaka on Sunday, the Indian High Commissioner, Pranay Verma, said in the last two consecutive years, India has emerged as a largest destination for Bangladesh's exports in Asia with its turnover crossing $2-billion mark.
He quoted a study that says seamless transport connectivity, along with improved trade and transport regulations and infrastructure, between the two neighbours holds the potential to pitchfork Bangladesh's exports to India by almost 300 per cent.
"And increasing Bangladesh exports to India is one of the priorities of our trade relations with Bangladesh as Bangladesh makes the important economic graduation to become a developing country in 2026," the Indian envoy told his audience.
"We are going to slowly start negotiating a Comprehensive Economic Partnership Agreement (CEPA) through which both countries will be able to harness each other's growing potential to mutual benefit," he added.
Highlighting the importance of the CEPA, Mr Verma termed the would-be deal as a "forward-looking framework that is not just focused on trade, but also, more importantly, on creating supply- chain linkages, creating value chain linking our MSMEs in an overall scheme of raising the level and quality of our trade engagement with Bangladesh".
Both the countries have instituted other innovative ways to promote trade, such as settlement of a part of bilateral trade in Indian rupee, which can provide a new boost not just to trade ties, but in particular, to promote Bangladesh exports to India, he opined.
About the progress in energy connectivity he said a cross-border diesel pipeline was launched last year that is bringing high-speed diesel from an Indian refinery into Bangladesh.
Through cross-border power-transmission lines, power transmission from Nepal to Bangladesh would be launched soon, he said about Bangladesh's long-dormant electricity-import plan.
Rolling out umpteen cooperation plans, he also said India was moving forward to achieve great connectivity with Bangladesh through a high-capacity interconnection between Katihar in India and Parbatipur in Bangladesh that will establish a synchronous regional energy network connecting Bangladesh not just with India but also with Nepal and Bhutan.
"Another emerging dimension of our connectivity agenda is our ongoing project for high tech IT parks in 12 districts of Bangladesh, which will become incubation centers for IT workforce, is an example of the new focus on digital connectivity."
Furthermore, the envoy said, they are creating new platforms such as India-Bangladesh Startup Bridge, which was launched last year by the Prime Minister of Bangladesh to connect startup communities to promote collaboration in digitisation, innovation and entrepreneurship. "We also signed an MOU last year to create linkages between our digital payment platforms."
Given the shared geography and similar development visions of both the countries, Bangladesh's aspirations and emergence as regional economic and connectivity hub is very much aligned with part of India's own outlook for regional and sub-regional integration, he informed the meet.
"An important connectivity link for our northeastern states with Bangladesh is our agreement on the use of Chattogram and modular ports, whereby goods can be transported to India's Northeastern region from the west of India and vice versa to Bangladesh. This will save time and overheads for our traders and generate revenue for Bangladesh's logistic sector."
He noted that Bangladesh is important for their northeastern states. Given the geographical proximity of northeastern states of India with Bangladesh, "Bangladesh is best positioned to tap into the abundant economic potential of India's northeast".
The diplomat said they believe that Bangladesh can be a driver of their northeast economic development.
India that is more connected to its Northeast and the Northeast that is more connected to India's neighbors like Bangladesh will mean a complete transformation of the regional economy.
Underscoring the role of Japan in promoting the regional connectivity, he said Japan is clearly a valuable partner in development agenda for the sub-region with Japan.
"Japan's growing engagement in Bangladesh offers opportunities to create new synergies in our sub-regional connectivity agenda, including under Japan's big B initiative," he said about a greater integration.
Addressing the seminar as chief guest through virtual platform, State Minister for Commerce Ahsanul Islam Titu said efforts were underway to make customs procedure in Chittagong Port paperless to remove hassles for businessmen.
He had talked to Singapore Commerce Minister recently about this plan.
The minister also urged Japanese investors to come forward to invest in Chittagong Port mordenisation projects.
He thanked India for allowing the export of 50,000 metric tonnes of onions ahead of Ramadan.
He said Japan could be an excellent partner for supporting Bangladesh and India in building connectivity with the northeastern states of India.
He also sought cooperation from the international community in addressing post-graduation challenges.
Mr Titu urged India to resume the 'border haats' and to raise the number of the haats, which he thinks can help make the border peaceful.
"India is not only one of the largest trading partners but it played a vital role in ensuring food security of Bangladesh," the state minister noted.
Japanese Ambassador in Dhaka Iwama Kiminoru attended the seminar as guest of honour.
Executive director of the CPD Fahmida Kharun moderated the sessions also addressed by former foreign secretary Shahidul Huq, JICA Chief Representative Ichuguchi Tomohide, Prof Kemmmei Tsubota of Toyo University, BIMSTEC secretary- general Indra Mani Pandey, principal public-sector management specialist of the ADB Sonoko Sunayama, Chief Country Representative of JETRO Yuji Ando, Pran RFL director Uzma Chowdhury, MD of Conveyer Logistics Ltd Dr Kabir Ahmed.
Syed Yusuf Saadat of the CPD presented the keynote.
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