India urges regional bloc that includes Bangladesh to fast-track trade talks
Live Mint - 07 August 2024
India urges regional bloc that includes Bangladesh to fast-track trade talks
By Rhik Kundu
India has urged a regional bloc that includes Bangladesh to consider reaching a preferential trade deal among its seven member nations before eventually finalising a free trade agreement.
A preferential trade agreement would require members of the trading bloc to give preferential access to certain products from other member countries despite the absence of an FTA.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, or BIMSTEC, links five South Asian countries—Bangladesh, Bhutan, Nepal, India, and Sri Lanka—and two Southeast Asian nations—Myanmar and Thailand.
While there is a burning desire among BIMSTEC members to pursue greater trade engagements and sign an FTA, it is important to examine and fast-track realistic possibilities, India’s commerce and industry minister Piyush Goyal said on Wednesday.
He suggested the creation of a BIMSTEC desk by its member countries to handhold investments and trade and to support tourism.
“I think a serious effort to remove non-tariff barriers, trade barriers and adopting international norms on trade facilitation, e-commerce, and connectivity can help our countries progress faster,” Goyal added, speaking at the first BIMSTEC business summit, held in New Delhi.
Countering China
For India, the trading bloc serves as a platform for regional cooperation and connectivity, helping it engage with other Asian countries while countering China’s influence.
Negotiations for a free trade agreement among BIMSTEC nations began in 2004 but haven’t been concluded as some of these countries already have trade agreements with other bloc members.
Despite the absence of an FTA, BIMSTEC members have had non-binding agreements focusing on trade, investment, technology, and tourism.
India hopes to strengthen trade and investment ties with its neighbours through BIMSTEC. An FTA, once finalised, could boost economic exchanges.
Goyal said BIMSTEC members should examine their current trading relations, adding that trade among the group has a long way to go to achieve its full potential.
“There are relations that all seven countries share… making us the right candidate to strengthen our supply chains and ensure trade is on fair terms among member countries,” Goyal said. “We could look at payment in local currencies within this region.”
The Bangladesh crisis
On the recent developments in Bangladesh, Goyal said the Indian government is deeply concerned about the evolving crisis in the South Asian country.
Protests in Bangladesh, initially started by students objecting to reservations in government jobs, escalated to a massive upheaval against the government, eventually leading to Sheikh Hasina resigning as prime minister and fleeing to India earlier this week.
In Dhaka, Nobel Laureate Muhammad Yunus has been appointed to head an interim government to tackle the country’s various issues.
“India has always looked upon itself as a responsible nation which cares and looks after the interests of the Global South,” Goyal said.
