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Countries should cooperate for regional development: Commerce Minister of Bangladesh
Jan 17, 2015

“South Asia has 3% of the world surface area but 20% of the population but it is the least integrated region of the world,” says Mr Tofail Ahmed, Minister of Commerce, Bangladesh in an interactive session on “ Revitalizing South Asia Economic Cooperation: The Options in the Midst of Prevailing Constraints,” held in Jaipur on January 16, 2015. He went on adding that “South Asian countries should cooperate for regional development.”Focusing on the growth Bangladesh achieved in the recent past especially after Independence in 1971, he said, “its 70 million people which was starving now export worth $30 billion, brings $15 billion remittances and has positive current account balance. Bangladesh has become an important country in South Asia. We are grateful to India for duty free market access of many products however we still face trade barriers in some sectors. Stressing on the factors to improve regional collaboration, Mr Ahmed said, “South Asian countries should adopt adequate reforms to provide better access to other markets as a way to expand trade. We need to make SAFTA more effective. Member countries should focus on three areas – connectivity, corridors and transit routes and should recognize standard agreements for greater regional benefits. There should be free movement of semi-skilled labours across the region.”

 

The interactive session was a part of The Partnership Summit 2015 organized by the Confederation of Indian Industry (CII) in cooperation with the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India and the Government of Rajasthan in Jaipur, Rajasthan from Jan 15-17, 2015.

 

In his address, Mr Wencai Zhang, Vice President, Asian Development Bank, Philippines said, “South Asian has been growing at 6% annually since 1990s and can even grow faster if more integrated. The intra-regional trade in South Asia is just below 6% while that of NAFTA is 50% and European Union is 70%. About 500 million people are living below $1.5 a day. There are not enough jobs, energy, security, and often affected by natural disasters. Regional collaboration can address many of these challenges. It can reduce trade cost and improve efficiency. For decades now, Asian Development Bank (ADB) has been supporting regional trading blocs like SAARC, BIMSTEC, BCIM, etc. in many ways. Since 2001, ADB supported 33 investment projects, 39 tech-projects worth $32 million and initiatives were taken to modernize custom procedures in South Asia.” Adding on the steps to be taken to improve regional integration, Mr Zhang said, “Two areas should be focused – physical connect by building road, railways and other routes and address soft issues like customs, promoting Easy of doing business and policy reforms.”

 

Giving his perspectives on the issue, Mr Shishir Priyadarshi, Director, World Trade Organisation (WTO) said, “Though WTO nine years ago highlighted the lower intra-regional integration in South Asia, not much has been improved. A win-win situation for all can be attained from deepening regional collaborations. If member countries do not act promptly, mega regional deals like the EU-US, TPP etc. can be further challenge. If South Asian countries identify competencies of what they can produce and develop regional value chains, we can develop brand South Asia. WTO is playing crucial role in three priority areas - bringing down the barriers of trade, making trade facilitation agreements and aid for trade initiatives.”

 

His Excellency Shaida M Abdali, Ambassador, the Islamic Republic of Afghanistan stated that “a win-win partnership is replacing the old world order. Partnership is imminent as the world is increasingly becoming interdependent in trade, investment and security. Though political differences kept the region poorly integrated, the need and silent development of economic integration is changing the picture in South Asia. I hope that regional leaders will realize the importance of regional integration in this New Year.”

 

Mr Suraj Vaidya, Senior Vice President, SAARC Chamber of Commerce & Industry and Immediate Past President, Federation of Nepalese Chambers of Commerce & Industry (FNCCI), Nepal said, “lower integration provides immense opportunity for the region to find new ways for larger, deeper and bold regional associations. The region should focus on three areas. First is build road connectivity within the region. There is a Chinese proverb – if you want to be rich, build roads. Greater connectivity will save time, cost and more movement of people.”

 

Mr Sanjay Budhia, Chairman, CII National Committee on Export & Export Competitiveness and Managing Director, Patton International Limited said, “Efforts are being made to improve regional integration from both the ends of governments and private businesses. South Asia has talents, resources and policy reforms to offer many to the world. Integration by investment can play a key role for the region. We can learn from NAFTA, EU. We should develop Regional Value Chains, airports, ports and better communication system.”

 

Jaipur

Jan 16, 2015

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