Business leaders stress regional energy trade *******
Thursday, 19 May 2011
FE Report
Businessmen at a seminar said Wednesday tariff and non-tariff barriers, lack of trade facilitation and slow progress towards regional connectivity are the main roadblocks to trade expansion in South Asia. With 22 per cent of the world population, the SAARC (South Asian Association for Regional Cooperation) region has potential for using economic integration to reduce poverty, they said. But political mistrust among the countries of the region has hindered economic freedom as it is a pre-requisite for socio-economic development of the SAARC. The observations came at the seminar on "Economic Freedom and Business Environment in South Asia" in the city, jointly organised by SAARC Chamber of Commerce and Industries (SCCI) and Federation of Bangladesh Chambers of Commerce and Industries (FBCCI). Commerce Minister Muhammad Faruq Khan was present as the chief guest while FBCCI PresidentAK Azad delivered the address of welcome. President of SCCI Annisul Huq presented the keynote paper. FBCC President said liberal trade facilitation can be instrumental for economic integration in the SAARC region. "I call upon the governments of SAARC countries to undertake business-friendly trade facilitation policies focussing on integration with regional trades in goods, services and investments," he said. "We strongly urge the governments of Bangladesh, Bhutan, India and Nepal to expedite talks on regional energy cooperation framework and conclude a regional energy trade agreement to foster and facilitate regional energy trade . ," he added. He suggested introduction of SAARC multiple business visa, harmonisation of cross-border trade regulations, simplification of customs clearance procedures, development of transport and communication infrastructure including ports and formation of SAARC trade infrastructure development fund. President of SCCI Annisul Huq said the World Economic Freedom (WEF) index is based on 10 individual freedoms such as business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights and freedom from corruption. "Each of the freedom is equally important for individuals as well as for nations as a whole, because the net effect of these freedoms lead to a national prosperity and sustainable economic growth," he said. "The share of South Asia in the world economy is less than two per cent. The eight nations of SAARC contribute only 1.7 per cent in the global trade with export goods worth US $ 250 billion, which is less than a single country of Association of Southeast Asian Nations (ASEAN)- Singapore," he said. Terming businessmen most important people, the commerce minister said the business people play an important role in contributing to the economic development of the country. With regard to economic freedom, Faruk Khan said, "Economic freedom mostly lies with political decision. Unfortunately none of the SAARC countries offers economic freedom due to political reason and mistrust among the politicians of those countries". "To end this, a lot needs to be done and the political leaders in the region must have come together. Let us forget the past. This a good time for us to put our heads together for the benefit of SAARC," he said. Regarding tariff and non tariff barriers, the commerce minister said, "We are discussing the matter with India, Nepal and Bhutan to improve business". The SAARC countries share less than five per cent of their trade and businesses with each other, and the rest of the businesses are done with the European Union (EU) countries and USA. Faruk Khan suggested private entrepreneurs of the SAARC to come forward with specific recommendations so that politicians in the region could make a way out. "I call upon you (SCCI and FBCCI) to give me recommendations so that I can discuss the matter in the Ministerial Meeting of South Asian countries in Male on June 15 next," he said. Regarding the simplification of visa regime among the SAARC countries, he said, "It is a painful that non availability of visa in the region puts hurdles on the economic liberalisaiton among the countries of South Asia". About 52 business delegates from India, Pakistan, Nepal, Bhutan, Sri Lanka, Maldives, Afghanistan and Bangladesh attended the seminar.
Businessmen at a seminar said Wednesday tariff and non-tariff barriers, lack of trade facilitation and slow progress towards regional connectivity are the main roadblocks to trade expansion in South Asia. With 22 per cent of the world population, the SAARC (South Asian Association for Regional Cooperation) region has potential for using economic integration to reduce poverty, they said. But political mistrust among the countries of the region has hindered economic freedom as it is a pre-requisite for socio-economic development of the SAARC. The observations came at the seminar on "Economic Freedom and Business Environment in South Asia" in the city, jointly organised by SAARC Chamber of Commerce and Industries (SCCI) and Federation of Bangladesh Chambers of Commerce and Industries (FBCCI). Commerce Minister Muhammad Faruq Khan was present as the chief guest while FBCCI PresidentAK Azad delivered the address of welcome. President of SCCI Annisul Huq presented the keynote paper. FBCC President said liberal trade facilitation can be instrumental for economic integration in the SAARC region. "I call upon the governments of SAARC countries to undertake business-friendly trade facilitation policies focussing on integration with regional trades in goods, services and investments," he said. "We strongly urge the governments of Bangladesh, Bhutan, India and Nepal to expedite talks on regional energy cooperation framework and conclude a regional energy trade agreement to foster and facilitate regional energy trade . ," he added. He suggested introduction of SAARC multiple business visa, harmonisation of cross-border trade regulations, simplification of customs clearance procedures, development of transport and communication infrastructure including ports and formation of SAARC trade infrastructure development fund. President of SCCI Annisul Huq said the World Economic Freedom (WEF) index is based on 10 individual freedoms such as business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights and freedom from corruption. "Each of the freedom is equally important for individuals as well as for nations as a whole, because the net effect of these freedoms lead to a national prosperity and sustainable economic growth," he said. "The share of South Asia in the world economy is less than two per cent. The eight nations of SAARC contribute only 1.7 per cent in the global trade with export goods worth US $ 250 billion, which is less than a single country of Association of Southeast Asian Nations (ASEAN)- Singapore," he said. Terming businessmen most important people, the commerce minister said the business people play an important role in contributing to the economic development of the country. With regard to economic freedom, Faruk Khan said, "Economic freedom mostly lies with political decision. Unfortunately none of the SAARC countries offers economic freedom due to political reason and mistrust among the politicians of those countries". "To end this, a lot needs to be done and the political leaders in the region must have come together. Let us forget the past. This a good time for us to put our heads together for the benefit of SAARC," he said. Regarding tariff and non tariff barriers, the commerce minister said, "We are discussing the matter with India, Nepal and Bhutan to improve business". The SAARC countries share less than five per cent of their trade and businesses with each other, and the rest of the businesses are done with the European Union (EU) countries and USA. Faruk Khan suggested private entrepreneurs of the SAARC to come forward with specific recommendations so that politicians in the region could make a way out. "I call upon you (SCCI and FBCCI) to give me recommendations so that I can discuss the matter in the Ministerial Meeting of South Asian countries in Male on June 15 next," he said. Regarding the simplification of visa regime among the SAARC countries, he said, "It is a painful that non availability of visa in the region puts hurdles on the economic liberalisaiton among the countries of South Asia". About 52 business delegates from India, Pakistan, Nepal, Bhutan, Sri Lanka, Maldives, Afghanistan and Bangladesh attended the seminar.