BIMSTEC body meeting in Dhaka next month
Saturday, 18 August 2007
FE Report
The 15th Trade Negotiation Committee (TNC) meeting of the BIMSTEC will be held in Dhaka next month to prepare a ground for signing free trade agreement (FTA) by the leaders of the member countries in the upcoming summit in New Delhi, diplomatic sources said.
BIMSTEC or Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation is an economic bloc of seven South and Southeast Asian countries comprising Bangladesh, Myanmar, India, Sri Lanka, Thailand, Nepal and Bhutan.
Trade experts in the region project that once the trade liberalisation takes place under BIMSTEC FTA the volume of intra-regional trade will be worth US$ 40-$ 60 billion a year.
They said regional trade in South Asia currently accounts for less than six per cent of the total trade in the region, 22 per cent within the ASEAN free trade and 65 per cent within EU.
The date for implementing the FTA, a top priority among the member nations, expired over a year ago. The member states had agreed to implement the agreement from July 2006.
However, more than 50 top BIMSTEC officials from foreign affairs, tariff commission, revenue board, and commerce ministry, are expected to attend the meeting scheduled for September 24-26, sources said.
They said if consensus is reached over the undecided issues the leaders of member countries will sign an agreement in the upcoming BIMSTEC summit scheduled to be held in New Delhi by end of this year.
"So far we understand, the member countries will try their best this time to resolve the issues relating to tariff and non-tariff barriers, rules of origin and benefits for the least developed counties including Bangladesh for signing the agreement," a source said.
He further said: "We will discuss the draft agreement on trade negotiation to protect interests of each member country."
The meeting will discuss setting up of timeframe for India, Sri Lanka and Thailand to reduce their duties on specific items under the first phase of FTA, he said, adding there will be another timeframe set for Bangladesh, Myanmar, Bhutan and Nepal to reduce duties on specified goods.
Besides, sources said timeframe for implementation of the second phase of FTA by India, Sri Lanka and Thailand will also be rescheduled for reducing tariffs on selected products for the developing and the least developed BIMSTEC members.
However, they said Dhaka is likely to provide 522 products of three least developed countries (LDCs) of BIMSTEC with duty-free access. The products now enjoy 10 per cent tariff.
BIMSTEC member countries agreed to establish the BIMSTEC FTA Framework agreement in order to stimulate trade and investment.
The 15th Trade Negotiation Committee (TNC) meeting of the BIMSTEC will be held in Dhaka next month to prepare a ground for signing free trade agreement (FTA) by the leaders of the member countries in the upcoming summit in New Delhi, diplomatic sources said.
BIMSTEC or Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation is an economic bloc of seven South and Southeast Asian countries comprising Bangladesh, Myanmar, India, Sri Lanka, Thailand, Nepal and Bhutan.
Trade experts in the region project that once the trade liberalisation takes place under BIMSTEC FTA the volume of intra-regional trade will be worth US$ 40-$ 60 billion a year.
They said regional trade in South Asia currently accounts for less than six per cent of the total trade in the region, 22 per cent within the ASEAN free trade and 65 per cent within EU.
The date for implementing the FTA, a top priority among the member nations, expired over a year ago. The member states had agreed to implement the agreement from July 2006.
However, more than 50 top BIMSTEC officials from foreign affairs, tariff commission, revenue board, and commerce ministry, are expected to attend the meeting scheduled for September 24-26, sources said.
They said if consensus is reached over the undecided issues the leaders of member countries will sign an agreement in the upcoming BIMSTEC summit scheduled to be held in New Delhi by end of this year.
"So far we understand, the member countries will try their best this time to resolve the issues relating to tariff and non-tariff barriers, rules of origin and benefits for the least developed counties including Bangladesh for signing the agreement," a source said.
He further said: "We will discuss the draft agreement on trade negotiation to protect interests of each member country."
The meeting will discuss setting up of timeframe for India, Sri Lanka and Thailand to reduce their duties on specific items under the first phase of FTA, he said, adding there will be another timeframe set for Bangladesh, Myanmar, Bhutan and Nepal to reduce duties on specified goods.
Besides, sources said timeframe for implementation of the second phase of FTA by India, Sri Lanka and Thailand will also be rescheduled for reducing tariffs on selected products for the developing and the least developed BIMSTEC members.
However, they said Dhaka is likely to provide 522 products of three least developed countries (LDCs) of BIMSTEC with duty-free access. The products now enjoy 10 per cent tariff.
BIMSTEC member countries agreed to establish the BIMSTEC FTA Framework agreement in order to stimulate trade and investment.