Free trade arrangement (FTA) with India
Monday, 23 June 2008
BANGLADESH may look forward to having a bilateral free trade accord (FTA) with India similar to that between New Delhi and Colombo. This is likely to help promote its best economic interests. It can carefully study the India-Sri Lanka FTA as a guide in this respect as Sri Lanka's export reportedly rose by 137 per cent following the signing of the related accord. Also, foreign investment flows to Sri Lanka have gone up in the recent years.
Stereotype notions exist about expanding Indo-Bangladesh trade. These relate to the weaker position of Bangladesh's indigenous industries and how far these would be able to cope with the pressure that freer entry of Indian goods could create for them.
But it needs to be realised that Indo-Bangladesh free trade would not mean wholesale free access of all kinds of Indian goods to the Bangladesh market. Only a limited number of goods, the number of which is to be negotiated, will gain such free access status on both sides.
The fear of Indian goods flooding the market of Bangladesh, in the wake of any bilateral FTA, all on a sudden and crippling local enterprising does not seem to be a realistic one. The forward-looking members of the business community in Bangladesh have generally welcomed the FTA idea considering it as an opportunity to expand the country's export activities.
In the present situation, India enjoys a huge and one-sided advantage over Bangladesh in its formal and informal trade. With an FTA in place, this picture could change considerably with Bangladeshi export products reaching Indian markets in significantly increased number and volumes. In the process thereof, this could have limited, to some extent, the one-sided exploitation of advantage by India in the bilateral trade.
Amin Ibrahim
Baridhara, Dhaka.
Stereotype notions exist about expanding Indo-Bangladesh trade. These relate to the weaker position of Bangladesh's indigenous industries and how far these would be able to cope with the pressure that freer entry of Indian goods could create for them.
But it needs to be realised that Indo-Bangladesh free trade would not mean wholesale free access of all kinds of Indian goods to the Bangladesh market. Only a limited number of goods, the number of which is to be negotiated, will gain such free access status on both sides.
The fear of Indian goods flooding the market of Bangladesh, in the wake of any bilateral FTA, all on a sudden and crippling local enterprising does not seem to be a realistic one. The forward-looking members of the business community in Bangladesh have generally welcomed the FTA idea considering it as an opportunity to expand the country's export activities.
In the present situation, India enjoys a huge and one-sided advantage over Bangladesh in its formal and informal trade. With an FTA in place, this picture could change considerably with Bangladeshi export products reaching Indian markets in significantly increased number and volumes. In the process thereof, this could have limited, to some extent, the one-sided exploitation of advantage by India in the bilateral trade.
Amin Ibrahim
Baridhara, Dhaka.