BD shows potential to double trade with S Asia: WBM

Humayun Kabir: A new World Bank report says that Bangladesh has the potential to double its trade with South Asian countries.
The report titled ‘A Glass Half Full: The Promise of Regional Trade in South Asia,’ says that trade within South Asia can grow three times, from $23 billion to $67 billion, by reducing manmade trade barriers, reports UNB.
The report published yesterday identified four critical barriers to regional trade: tariffs and para tariffs, real and perceived non¬tariff barriers, connectivity costs, and a broader trust deficit.
“Bangladesh can become an economic powerhouse by deepening regional and global integration in trade, connectivity, energy and investment,” said Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan, and Nepal.
“For increased regional trade, the country needs to focus on improving its trade policy regime, which currently has a strong anti-export bias.”
“Trust between countries is in short supply in South Asia. Border haats between Bangladesh and India, aimed at recapturing the once thriving economic and cultural relationships are now changing cross-border relations,” said Sanjay Kathuria, World Bank Lead Economist and lead author of the report.
The report recommended targeting sensitive lists and para tariffs to enable real progress on Safta.
Policymakers draw lessons from the India-Sri Lanka air services liberalisation experience, where liberalisation was gradual and incremental, but policy persistence paid off, it also suggested.
Connectivity is another key enabler for robust regional cooperation in South Asia, said the World Bank.