They said there is a general misconception among certain sections in the government regarding the FTA as they believe that multilateral FTA would cover the preferential trade issues of the countries going for bilateral agreement.

The business leaders made the observations at meeting at the Metropolitan Chamber of Commerce and Industry (MCCI) in Dhaka.

They said bilateral FTA negotiations with India, Pakistan, Sri Lanka and Nepal ran out of steam on the misconception that Safta (South Asian Free Trade Area) and free trade deal within Bimstec (Bay of Bengal Initiatives for Multi-Sectoral Technological and Economic Cooperation) may overlap.

"We have a growing feeling that the importance of free trade is yet to be politically accepted in the country," MCCI President Kutubuddin Ahmed told the meeting attended by Commerce Minister Altaf Hossain Choudhury.

He said bilateral FTAs would rather complement the multilateral system. In the changing era of globalisation, the country must pursue at both bilateral and multilateral levels to improve its trade position, Kutubuddin said.

"It should be realised that our domestic market being not large enough to give the economy a six to seven percent growth, which is needed to tackle poverty, we need to avail of the free trade opportunity," the MCCI chief continued.

He said indecision and resultant delay will only slow down the national preparedness and worsen the terms of trade even with neighbouring countries.

Former President of MCCI Tapan Chowdhury said the recommendations of Free Trade Group (FTG), which was formed by the government to deal with free trade issues, is gathering dusts in the commerce ministry.

"Bilateral FTA does not mean that foreign products will flood our market. Rather it will open scope for our country to increase exports banking on preferential facilities," he said urging the government to convene an inter-ministerial meeting to break the gridlock.

MCCI Vice-president Shahab Sattar said, "We have some political misconceptions about bilateral FTA which must be removed through interactions between the government and businesspeople."

Although India and Sri Lanka have a bilateral FTA and Thailand and India are on free trade talks, they are spearheading the efforts for Bimstec free trade deal. India and Sri Lanka are also champions for Safta, he said.

Responding to the business leaders' comments on FTAs, the commerce minister said the government will hold an inter-ministerial meeting and sit with trade bodies to evaluate the recommendations of FTG on bilateral free trade deals.

He said the government will take a decision on this issue considering the long-term trade interest of the country.

When asked about new Indian government's position on FTA with Bangladesh, he referred to his talks with new Indian Commerce Minister Komal Nath and said, "I have found that they are keen for the FTA with Bangladesh."

MCCI Secretary-General CK Hyder said if the government allows the chamber to make presentation on the bilateral FTA, it would surely convince the government that bilateral FTA is necessary side by side multilateral FTA.

Mahabubur Rahman, president of International Chamber of Commerce-Bangladesh, Mahbub Jamil, president of Foreign Investors' Chamber of Commerce and Industry, and Rokia A Rahman, president of Women Entrepreneurs' Association, Bangladesh, also spoke at the function.