He said, "A political will in the region is the most important to make sure that bilateral disputes do not enter into the Safta process".

Quoting from his own experiences on Safta negotiations, the adviser also said, "I strongly feel that bilateral disputes sometimes stood as an obstacle to achieving the Safta goals."

The adviser was addressing the inaugural session of a seminar on 'Trade Liberalisation under Safta' at a hotel in Dhaka jointly organised by Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Saarc Chambers of Commerce and Industry (SCCI) in cooperation with Friedrich Naumann Stiftung (FNSt).

Ugen Tshechup Dorji, president, Jamil Mehboob Magoon, senior vice-president of SCCI, and Mir Nasir Hossain, president of FBCCI, also spoke on the occasion.

The finance adviser however stressed the need for deeper tariff cut and wider product coverage, shortening of sensitive list, mutual recognition of certification and harmonisation of standard, improvement of physical connectivity, simplification of customs regulations and procedure for movement of goods, special and differential treatment for the least developed countries (LDCs) to further develop the Safta (South Asian Free Trade Area).

He said, "Trade has been more concentrated between selected developing countries and developed countries rather than that among the developing countries. There are number of reasons for this undesirable reality".

Lack of physical connectivity and historical prejudices, which were nurtured by the colonial regime, are the reasons behind the undesirable economic reality of the South Asian region, he explained.

Citing an example of traditionally inadequate physical connectivity among the countries in the region, he said some years back it was very easy to fly in London from Dhaka than from Dhaka to Delhi.

Pointing out the positive and negative aspects of trade liberalisation, Islam said trade and investment should really be aggravated in the Saarc region.

About Safta's potentiality, he said Safta can be an effort to break down barriers to banish all prejudices and to promote sustainable growth in all countries in respect of equality and mutuality.

Describing Safta 'not a quick walk', he said,"It is a matter of satisfaction that it was completed. But a full realisation of its potential would require concerted actions on many progresses".

To resolve the challenges on the way of Safta implementation, he said, cooperation between public and private sectors is a crucial factor.

Echoing the finance adviser's view on public-private sector cooperation, the SCCI president said, "Safta is still in a nascent stage and requires the mutual support and efforts of these two sectors for making this significant initiative a success."

He said with the implementation of Safta, it is estimated that the current level of intra-regional trade will rise from $6billion to $14billion.

The FBCCI president emphasised a timeframe to resolve the trade disputes for Safta implementation.

For implementation of the Safta roadmap through downsizing the negative products list, immediate tariff reduction and a residual tariff liberalisation, he said, "We must address these issues within a mandatory timeframe."

UNB adds: The business session was held at Sonargaon hotel with former commerce minister Amir Khasru Mahmud Chowdhury in the chair.

As a way out of the deadlock over making the Safta functional, a delegate from Pakistan, Mahmood Ahmed suggested a change in the traditional mindset based on distrust between Pakistan India.

"We have to change our mindset; we must build trust on each other, otherwise Safta will fail to reach its desired destination," the Pakistani business expert said.

Desal De Mel, a research officer of the Institute of Policy Studies in Sri Lanka, in his presentation also blamed Indo-Pak paranoia for putting free trade on the backburner.

FBCCI director MA Rouf mentioned that non-tariff and para-tariff barriers impeded improvement of Bangladesh's trade relation with India.

Indian Deputy High Commissioner Sarvajit Chakravarti denied all allegations against India and said, "We are here to work with you."

Talking to newsmen after the seminar, Amir Khasru Mahmud Chowdhury looked further forward to prescribing that it is better to establish 'economic union' or 'customs union' rather than pursue trade liberalisation.

He also emphasised holding meeting of the Saarc finance ministers once a year to advance the matters of trade and finance.