Dhaka likely to trim its SAFTA sensitive list
Saturday, 17 March 2012
Syful Islam
Bangladesh might further trim its sensitive list of products under the South Asian Free Trade Area (SAFTA) accord, trade officials have said.
Since January this year Bangladesh has had 987 products on the sensitive list for the Least Developed Countries (LDCs) and 993 goods for non-LDCs which will be subjected to tariff payment.
"From the next month we will start consultations with the stakeholders to select the items which could be taken out from the sensitive list," a senior official of the Ministry of Commerce (MoC) told the FE Thursday.
He said SAFTA was formed on January 6, 2004 with the objective of gradual elimination of most tariff and other trade barriers on products and services among the member countries -- Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, Afghanistan and Sri Lanka.
"Many of the member countries have already downsized their sensitive lists. India has reduced it to 25 items for LDCs and 695 for non-LDCs. So we need to be more open," the official said.
According to the latest statistics, Afghanistan's sensitive list comprises 858 products for both the LDCs and non-LDCs, Bhutan has 150 items on the list, the Maldives has 152, Pakistan 936, Nepal 998 for the LDCs and 1,036 for the non-LDCs, and Sri Lanka has 845 for LDCs and 906 for non-LDCs.
An MoC official said the Maldives is insisting on 100 per cent reduction of the sensitive list by 2012 to make the regional bloc a free trade area. He said during a meeting last year before the South Asian Association for Regional Cooperation (SAARC) summit, the Maldives officials tried to convince the member countries to incorporate it in the Addu Declaration.
He said India supported the proposal.
Talking to the FE Friday, Executive Director of the Centre for Policy Dialogue (CPD) Dr Mustafizur Rahman said SAFTA member countries have agreed to cut down their sensitive lists periodically.
"Since India has slashed the list drastically for the LDCs, there is pressure for other members to shorten theirs," he said adding that Bangladesh, as an LDC, will get the chance to reduce the number of items slowly.
Mr Rahman said Bangladesh has to consider three factors -- revenue implications, impact on domestic industry, and farming sector -- before selecting the products to bring out of the list.
"A priority list has to be prepared first which in any way won't be given tariff preference to any countries. Those which will get less priority in the list can be brought out from the sensitive list in phases," he suggested.
Chief Executive Officer of PRAN-RFL Group Amjad Khan Chowdhury, also president of Metropolitan Chamber of Commerce and Industry (MCCI), told the FE Friday that in this free market economy everything had to be open for all.
"Among the SAARC members, none but India matters to us in bilateral trade. So, I prefer free trade with India," he said.
Replying to a query he said, "Bangladesh's sensitive list can be shortened like that of India. Very few items can be kept on it."
Bangladesh might further trim its sensitive list of products under the South Asian Free Trade Area (SAFTA) accord, trade officials have said.
Since January this year Bangladesh has had 987 products on the sensitive list for the Least Developed Countries (LDCs) and 993 goods for non-LDCs which will be subjected to tariff payment.
"From the next month we will start consultations with the stakeholders to select the items which could be taken out from the sensitive list," a senior official of the Ministry of Commerce (MoC) told the FE Thursday.
He said SAFTA was formed on January 6, 2004 with the objective of gradual elimination of most tariff and other trade barriers on products and services among the member countries -- Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, Afghanistan and Sri Lanka.
"Many of the member countries have already downsized their sensitive lists. India has reduced it to 25 items for LDCs and 695 for non-LDCs. So we need to be more open," the official said.
According to the latest statistics, Afghanistan's sensitive list comprises 858 products for both the LDCs and non-LDCs, Bhutan has 150 items on the list, the Maldives has 152, Pakistan 936, Nepal 998 for the LDCs and 1,036 for the non-LDCs, and Sri Lanka has 845 for LDCs and 906 for non-LDCs.
An MoC official said the Maldives is insisting on 100 per cent reduction of the sensitive list by 2012 to make the regional bloc a free trade area. He said during a meeting last year before the South Asian Association for Regional Cooperation (SAARC) summit, the Maldives officials tried to convince the member countries to incorporate it in the Addu Declaration.
He said India supported the proposal.
Talking to the FE Friday, Executive Director of the Centre for Policy Dialogue (CPD) Dr Mustafizur Rahman said SAFTA member countries have agreed to cut down their sensitive lists periodically.
"Since India has slashed the list drastically for the LDCs, there is pressure for other members to shorten theirs," he said adding that Bangladesh, as an LDC, will get the chance to reduce the number of items slowly.
Mr Rahman said Bangladesh has to consider three factors -- revenue implications, impact on domestic industry, and farming sector -- before selecting the products to bring out of the list.
"A priority list has to be prepared first which in any way won't be given tariff preference to any countries. Those which will get less priority in the list can be brought out from the sensitive list in phases," he suggested.
Chief Executive Officer of PRAN-RFL Group Amjad Khan Chowdhury, also president of Metropolitan Chamber of Commerce and Industry (MCCI), told the FE Friday that in this free market economy everything had to be open for all.
"Among the SAARC members, none but India matters to us in bilateral trade. So, I prefer free trade with India," he said.
Replying to a query he said, "Bangladesh's sensitive list can be shortened like that of India. Very few items can be kept on it."