MoC to seek policy decision on FTAs with 3 major SA nations
Sunday, 18 April 2010
Nazmul Ahsan
The Ministry of Commerce (MoC) wants to get policy decision of the government towards forging bilateral Free Trade Agreements (FTAs) with large South Asian economies, trade official said.
The ministry is set to send a proposal to the Cabinet Committee on Economic Affairs soon to get the necessary approval before starting negotiations with the countries interested in striking FTAs with Bangladesh.
The proposal will include the name of three countries -- India, Pakistan and Sri Lanka, sources said.
The countries concerned have long been showing their interest in forging bilateral FTAs with Bangladesh. The successive governments, however, avoided the issue of FTAs.
India has been showing its keen interest to initiate negotiations on FTA with Bangladesh. It has again come up with the proposal ahead of the India-Bangladesh Commerce Secretary-level talks, scheduled to be held in Dhaka next month.
"We are almost ready to initiate talks on FTAs with interested countries, but need signal from the government," a top MoC official told the FE.
"We are proposing the names of three countries to Cabinet Committee on Economic Affairs next week."
Bangladesh would be benefited out of FTAs with big economies if favourable clauses could be included in the agreement, he said.
He said the mere granting of duty-free access of Bangladeshi products under the proposed FTAs would not benefit the country unless the para-tariff and non-tariff barriers are removed.
"We must demand national treatment at the national and local levels of three countries to avoid extra or para tariff," he told the FE.
National treatment at local level means no additional duties and charges will be levied on Bangladesh products which are not levied likewise on Indian, Pakistani or Sri Lankan products in their respective markets,' the trade diplomat elaborated.
Earlier, a Core Group formed by the government, strongly suggested the government to seek zero duty facility for all Bangladesh exports to the markets of three countries and demand the national treatment at local level to avoid any additional duties and charges.
Presently, exports from Bangladesh to India, Pakistan and Sri Lanka constitute less than three per cent of its total annual export earning while the imports from these countries represent about 13 per cent of its total import expenditures.
The Ministry of Commerce (MoC) wants to get policy decision of the government towards forging bilateral Free Trade Agreements (FTAs) with large South Asian economies, trade official said.
The ministry is set to send a proposal to the Cabinet Committee on Economic Affairs soon to get the necessary approval before starting negotiations with the countries interested in striking FTAs with Bangladesh.
The proposal will include the name of three countries -- India, Pakistan and Sri Lanka, sources said.
The countries concerned have long been showing their interest in forging bilateral FTAs with Bangladesh. The successive governments, however, avoided the issue of FTAs.
India has been showing its keen interest to initiate negotiations on FTA with Bangladesh. It has again come up with the proposal ahead of the India-Bangladesh Commerce Secretary-level talks, scheduled to be held in Dhaka next month.
"We are almost ready to initiate talks on FTAs with interested countries, but need signal from the government," a top MoC official told the FE.
"We are proposing the names of three countries to Cabinet Committee on Economic Affairs next week."
Bangladesh would be benefited out of FTAs with big economies if favourable clauses could be included in the agreement, he said.
He said the mere granting of duty-free access of Bangladeshi products under the proposed FTAs would not benefit the country unless the para-tariff and non-tariff barriers are removed.
"We must demand national treatment at the national and local levels of three countries to avoid extra or para tariff," he told the FE.
National treatment at local level means no additional duties and charges will be levied on Bangladesh products which are not levied likewise on Indian, Pakistani or Sri Lankan products in their respective markets,' the trade diplomat elaborated.
Earlier, a Core Group formed by the government, strongly suggested the government to seek zero duty facility for all Bangladesh exports to the markets of three countries and demand the national treatment at local level to avoid any additional duties and charges.
Presently, exports from Bangladesh to India, Pakistan and Sri Lanka constitute less than three per cent of its total annual export earning while the imports from these countries represent about 13 per cent of its total import expenditures.