The New Nation - Internet Edition

Staff Reporter

Foreign Adviser Dr Iftekhar Ahmed Chowdhury yesterday said that Bangladeshi export products were facing problem due to tariff barriers imposed by some South Asian countries.

He termed the South Asia Free Trade Agreement (SAFTA) as a powerful tool for bringing a positive economic change in the region.

" Our export to the region is faced with a number of non-tariff and para-tariff barriers, port restrictions, complicated customs procedures. Share in the total intra-regional trade of Bangladesh is 27 per cent, its share in regional export is 2.8 per cent only," he was addressing a seminar on "Regional Cooperation of South Asia: Benefits from SAFTA and the Way Ahead" at the BRAC Centre in the city.

The Centre for Policy Dialogue (CPD) organised the seminar. Adviser to a former caretaker government Syed Manzur Elahi moderated the programme while Prof Mustafizur Rahman delivered the welcome address.

It was also attended among others, by Annisul Huq, president of FBCCI, Mir Nasir Hossain former president of FBCCI and Feroz Ahmed, Commerce Secretary.

The Foreign Adviser Dr Iftekhar Ahmed Chowdhury said it is necessary to remove the difficulty that hinders integration of the region. He said the South Asian countries require deeper cuts in tariff rates, removal of tariff and non-tariff barriers, wider product coverage through reduction in the sensitive list, simplification of customs rules and banking procedures, mutual recognition arrangements and promoting cross-border investment for turning this region into an economically developed area.

FBCCI president Annisul Huq said free trade is not possible if the free movement in South Asian region cannot be ensured. He said that SAFTA would not be successful if all member countries do not get equal opportunity.

A joint report of the Asian Development Bank (ADB) and United Nations Trade and Development Corporation (UNCTAD) on the benefits of SAFTA and its future was presented in the seminar.

The report stressed a supportive overall policy framework for the promotion of transport and trade facilitation.

Bangladesh's welfare gains, the report says, appear the highest with increase in global exports by a significant production increase of 5.5 per cent in wearing apparel and 3 per cent in leather.

Output in chemicals, rubber, and plastics also rose by about 2 per cent while global export went up by 10 per cent, which is a validation of indications that Bangladesh is an emerging competitive producer in chemicals like pharmaceuticals, plastics and ceramics.

India's export gains from SAFTA are expected to be limited to a few agriculture sectors and the auto sector where it has relative comparative advantage. Pakistan will be the main market for sugar exports in the region.

Sri Lanka's gains in the first phase of liberalisation are almost nil since, but this improves in the second phase when textiles see a growth of about 4 per cent.

Afghanistan, Bhutan, the Maldives and Nepal see good export growth in agriculture products and primary commodities with full liberalisation.