FE REPORT
Experts during a webinar on Friday said regional trade in South Asia remained one of the least integrated regions and did not improve much in decades due to the narrow and non-cooperative political economic approach.
The South Asian regional trade has remained 5 per cent in the last 30 years while Southeast Asian regional trade 25 per cent and European Union 20 per cent, they added.
They also said the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) might complement the South Asian Association for Regional Cooperation (SAARC) to some extent, but a rejuvenated SAARC could play a vital role in regional integration.
The speakers also made a call to rejuvenate the SAARC for regional integration in the region.
The Asia Foundation organised the thematic webinar on "BIMSTEC and the Future of Regional Cooperation in South Asia".
Executive Director of South Asian Network on Economic Modeling (SANEM) Dr Selim Raihan said recent rail, road and different types of connectivity between India and Bangladesh may not be sustainable if both the countries are not politically well connected and good governance persists.
He also said the SAARC has made tremendous progress in the early 90s and 2004-05.
He mentioned that free trade agreement (FTA) discussions are going on at various levels in the region, but the countries want FTA with liberalising the economy.
Mr Raihan said weaker economies in the region may be benefitted from FTA among themselves.
He said FTA will increase foreign direct investment in the region.
Executive Director of South Asia Watch on Trade, Economics and Environment (SAWTEE) Dr Paras Kharel said if the BIMSTEC only cares about ports, it significantly decreases value for Nepal.
He questioned if the BIMSTEC is adding any value to existing bilateral trades for countries like Nepal.
He said certain political economic factors must be resolved before initiatives like the SAARC or the BIMSTEC to get success.
Mr Kharel said equality, mutual respect and non-interference should be practiced in bilateral ties.
Executive Director of the Regional Centre for Strategic Studies (RCSS) Dr George H Cooke stressed the need for prioritising neighbourhood first for larger engagement.
"We got to realise that this is for our best benefits," he added.
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