Thailand offers a nice trade basket

The challenge comes mainly from Dhaka's poor performance with respect to bilateral trade with Thailand. The trading pattern of the immediate past is indicative of our fundamental drawbacks insofar as the volume of export to Thailand is concerned.

While Dhaka's import from Thailand has increased many-fold over the years -- rising from $78.76 million in 1996 to $201.2 million by 2002 -- the export to Thailand has had a checkered history. Bangladesh's export to Thailand rose from $12.05 million in 1996-97 to $45.24 million in 1999-2000. It plummeted dramatically in 2002 to $27.88 million only.

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This state of flux occurred in the midst of Dhaka's predominance in exporting jute, leather products and ready- made garments into Thai market. The Thai authorities have given a second chance to Bangladesh to improve upon its traditional exports by keeping the same items in the current list of duty-free products too.

What remedy can one seek in light of the enumerated scenario to bring about a semblance of symmetry in the bilateral trade of the two regional neighbours? Option one would be that, Bangladeshi entrepreneurs might choose to export more of their pharmaceutical products to Thai markets while not forgetting to improve qualitatively upon traditional products like jute, ceramic and leather goods.

Knowing that that alone may not suffice to tilt the balance of trade pendulum in Dhaka's favour, our entrepreneurs might choose another option to export more consumer products--cosmetics and beauty products, for example-- for which Thailand currently spends nearly $8 billion annually from a $178 billion strong GDP. Exporting consumer products also seems more 'viable' due to Thailand's other major imports being capital goods and raw materials, which we too import as heavily as does Thailand.

Dhaka also must capitalize on another positive sign; the inclusion of 9 types of ceramic products in the list of duty free items. Bangladesh has fared better in ceramic exporting over the last two decades, but it must be mindful of the increased competition of ceramic products that has burgeoned in the intra- ASEAN markets. In this case too, Bangladeshi entrepreneurs will do themselves a better service by excelling in qualitative edges over the others.

The most important aspect of the Bangladesh-Thai enhanced economic cooperation is Thailand's expedited initiative in such matter, which manifested itself long before Bangladesh's immediate neighbors were willing to offer such a lucrative economic package to Dhaka.

By granting this privilege, Thailand seems to have offered Bangladesh a commercial bridgehead in the ASEAN. Dhaka must take extra care not to squander such an opportunity.