Boosting trade and investments with Myanmar
Saturday, 17 November 2007
UNTAPPED resources, if harnessed in time, can bring immense benefit to national economies and peoples across national borders. The position of Bangladesh and its immediate neighbouring country, Myanmar, is a case in point. Both are geographically located to enjoy huge complementary benefits from greater economic interactions involving trade, investments and industries. But this potential of mutually supportive economic growth and expansion based on greater forging of economic relationships between the two countries has unfortunately remained untapped when the opposite should have been the case. Economic regionalism is now the password for faster growth of national economies and Myanmar and Bangladesh need to well understand that fact and act accordingly to accrue substantial benefits for both of them at the soonest.
In this context, the proposals made in the second meeting of the Myanmar-Bangladesh Joint Trade Commission in Dhaka from the two sides, would deserve prompt positive actions on the part of both governments to pave the way for deepening of economic relations between the two close neighbours. From the Bangladesh side, the proposal is for piping Myanmar's natural gas, which the latter has in abundance, to Bangladesh for use in the fertiliser factories. A part of the produced fertiliser can then be sent to Myanmar for use in that country. Myanmar wants Bangladesh to invest in fertiliser factories within its territories using its natural gas. But it was underlined by Bangladesh that its proposal of producing fertiliser in its own factories using gas from Myanmar would be economically more sensible because in that case the need to make huge investments in building fertiliser factories in Myanmar and the long time to be required to do the same can be avoided. Fertiliser factories in Bangladesh have much excess capacities and these can increase production as soon as the gas from Myanmar arrives and building a pipeline from Myanmar to Bangladesh for piping the gas is a far less time consuming and easier task than going for the establishment of fertiliser factories in that country. Thus, it is expected that the Myanmar authorities would see the economic rationale of Bangladesh's position on the issue and respond appropriately.
Talks were also held on a wide range of economic issues with the visiting Myanmar delegation. In the earlier meeting with Myanmar last year, the Bangladesh side had proposed joint investments in the agriculture sector. It even suggested lease of huge currently fallow but productive agricultural lands in Myanmar for growing different crops there for meeting its own needs and for export. It was discussed that once such lands become available in Myanmar, private sector in Bangladesh could go for establishing different agro-industries utilising these lands exclusively for raising export-oriented agricultural products. The Myanmar government and its private sector would be welcome to participate in these ventures for their own gain. The discussions on this issue were followed up in the ongoing meeting with the Myanmar delegation. Other issues such as improving road connections between Myanmar and Bangladesh and related infrastructures were also discussed. A proposal was made from Bangladesh to double the minimum value of cash transaction in each case of a trade deal between the two countries.
All of these highly prospective areas of economic cooperation between the two countries now need to be very energetically followed up by both sides. Stepped-up Bangladesh-Myanmar economic relations can mean a very positive and ample win-win outcome for both countries. Therefore, the government and the private sector of the two countries should remain very dedicated to work tenaciously towards this goal.
In this context, the proposals made in the second meeting of the Myanmar-Bangladesh Joint Trade Commission in Dhaka from the two sides, would deserve prompt positive actions on the part of both governments to pave the way for deepening of economic relations between the two close neighbours. From the Bangladesh side, the proposal is for piping Myanmar's natural gas, which the latter has in abundance, to Bangladesh for use in the fertiliser factories. A part of the produced fertiliser can then be sent to Myanmar for use in that country. Myanmar wants Bangladesh to invest in fertiliser factories within its territories using its natural gas. But it was underlined by Bangladesh that its proposal of producing fertiliser in its own factories using gas from Myanmar would be economically more sensible because in that case the need to make huge investments in building fertiliser factories in Myanmar and the long time to be required to do the same can be avoided. Fertiliser factories in Bangladesh have much excess capacities and these can increase production as soon as the gas from Myanmar arrives and building a pipeline from Myanmar to Bangladesh for piping the gas is a far less time consuming and easier task than going for the establishment of fertiliser factories in that country. Thus, it is expected that the Myanmar authorities would see the economic rationale of Bangladesh's position on the issue and respond appropriately.
Talks were also held on a wide range of economic issues with the visiting Myanmar delegation. In the earlier meeting with Myanmar last year, the Bangladesh side had proposed joint investments in the agriculture sector. It even suggested lease of huge currently fallow but productive agricultural lands in Myanmar for growing different crops there for meeting its own needs and for export. It was discussed that once such lands become available in Myanmar, private sector in Bangladesh could go for establishing different agro-industries utilising these lands exclusively for raising export-oriented agricultural products. The Myanmar government and its private sector would be welcome to participate in these ventures for their own gain. The discussions on this issue were followed up in the ongoing meeting with the Myanmar delegation. Other issues such as improving road connections between Myanmar and Bangladesh and related infrastructures were also discussed. A proposal was made from Bangladesh to double the minimum value of cash transaction in each case of a trade deal between the two countries.
All of these highly prospective areas of economic cooperation between the two countries now need to be very energetically followed up by both sides. Stepped-up Bangladesh-Myanmar economic relations can mean a very positive and ample win-win outcome for both countries. Therefore, the government and the private sector of the two countries should remain very dedicated to work tenaciously towards this goal.