Grounds for serious trade negotiations exist

The commerce minister has used some expressive phrases like resolving 'trade disputes' with India, reaping 'early harvests', striking 'square deal with New Delhi in bilateral trade' as the set of 'right conditions' that needed to be fulfilled before the FTA negotiations can begin along meaningful lines. All these expressions indicate our eagerness as well as the issues that we need to address before FTA actually comes into being. The other way of putting it would be: are we going through a teething time before something solid happened in the bilateral trade paradigm between India and Bangladesh?

Minister Khosru has laid down four pre-requisites to the FTA talks: obtaining special and differential treatment to Bangladesh as per the WTO charter; consideration for comparative development stages of the two countries; resolution of problems pertaining to tariff, non-tariff and para-tariff barriers under one package; and assurance for equitable share of trade by reducing the huge trade gap of one billion dollar. The minister lays emphasis on the WTO charter because it has called upon stronger economies to offer special trade terms to weaker economies for the next five to ten years. India has yet to live up to that expectation.

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Basically, there have been a carry-over of expectations as far as Bangladesh is concerned. The Indian pledge to accord duty- and quota-free access to 25 categories of Bangladesh products has drawn a blank. On the back of such a debacle, Bangladesh has given her a fresh list of 118 items for free access to Indian markets. The commerce minister has made a test-case of 1,00,000 tonnes of Bangladesh cement which is yet to be given entry.

We think Minister Khosru Mahmud has made some pertinent points, the validity of which has only been reinforced by an unabated trade imbalance that is heavily tilted towards India.

India's perception appears to be that rather than dealing with the items in a piece-meal fashion, let there be comprehensive lists of goods exchanged between the two sides so as to determine the relative weightage to be given to the various items. And there should be a package deal in the shape of free trade agreement (FTA).

So, the moot points are all on the table and the ground is well-prepared for serious negotiations to ensue between Bangladesh and India. The FTA with Sri Lanka could be replicated with special advantages accorded to Bangladesh.

A new generation of Bangladeshi businessmen has grown alive to the need for dealing with their Indian counterparts for a better slice of market access to India. They can't be blind-folded to the huge potential business that the vast and diverse Indian market holds out to them in their immediate vicinity. The fabric shipment from India upon which our RMG sector is so critically dependent takes only 10 days while that from other suppliers would have taken a month or so. The prospect of receiving three consignments in one month is quite an advantage. The younger generation of Bangladeshi businessmen could veer away from the distant trade centres if the markets nearer home provided them with the right openings and incentives.

The volume of trade transacted between India and Bangladesh is huge and the potential is even greater; only that it is one-sided. A vibrant Bangladesh economy with a strong and sustainable growth trend will only be in India's self-interest. This India does not seem to understand in all its economic, social and political ramifications.

So, the upcoming FTA talks should address the concerns of both countries with special efforts made by India to accord differential treatment to Bangladesh.

The best of results can only accrue from trade negotiations if these are carried out without the encumbrances of non-trade issues.