Kathmandu Meet
Bimstec experts work out most of FTA issues
Diplomatic Correspondent
The seven-nation Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) regional grouping is all set to implement the Free Trade Agreement (FTA) among the member countries by July 1, 2006 as scheduled, though a few issues are yet to be ironed out. According to the officials of the foreign and commerce ministries, the Trade Negotiating Committee (TNC) of the grouping, which began a weeklong meeting in Katmandu on December 21, has already worked out most of the issues, including rules of origin, sensitive lists and dispute settlement mechanism. The experts would be able to complete the negotiations before the conclusion of the meeting, they hoped. "We look forward to an earlier conclusion of the negotiations for a comprehensive free trade area," said an important official of the commerce ministry. The decision to implement the FTA as scheduled was reaffirmed at the eighth ministerial meeting held in Dhaka on December 19. The meeting also decided to intensify economic integration by relaxing visa rules and enhancing cooperation in combating terrorism and transnational crime. The free trade agreement will be signed at the trade and economic ministers' meeting in Dhaka early next year. Officials said regional groupings like Saarc and Bimstec offer greater opportunities to attract foreign investment, a wider market for Bangladeshi products, and an environment for rapid economic growth. They said that the implementation of South Asia Free Trade Area (Safta) from January 1, 2006 and Bimstec FTA from July 1, 2006 would definitely promote investment and trade among the member countries as well as help accelerate socio-economic growth in the South and South-East Asian region. At present, regional trade in South Asia accounts for less than six percent of the total trade in the region compared to 22 percent within the Association of Southeast Asian Nations (Asean) free trade and 65 percent within EU. Foreign ministry officials quoting a study conducted by the trade experts in the region said that once the trade liberalisation takes place under Bimstec FTA, the volume of intra-regional trade will increase to between $ 40 and $ 60 billion every year. Bimstec was established in 1997 to promote economic and trade relations between the nations in South Asia and South East Asia.
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