The agreement that followed efforts over the last couple of years opens up the real possibility for Bangladesh to establish road links with Kunming of China on the one side and with Thailand, Malaysia, and Singapore on the other. Designated to start at Gundhum in Cox's Bazar, and then run over 23 kms through the Myanmar, the road is envisaged to eventually link up to the Chinese city of Kunming.

Bangladesh was closely linked with Myanmar socially, culturally, religiously, and economically for centuries. Large number of people from greater Chittagong and Noakhali migrated to Myanmar in quest of fortune. But the two countries despite having a common border were distant neighbours since the partition of India. The road link for which the countries have signed agreement is actually restoration of the Arakan road, which linked Chittagong with Akiyab until early 1960s.

Myanmar is the only other country, apart from India, to share land border with Bangladesh. Bangladesh has no border problem with Myanmar, as it has with India. The pushing of Rohingyas into Bangladesh is the only problem with Myanmar. The talks made considerable progress on the issue of repatriation of around 25,000 Rohingya refugees.

Although around 8,000 of the refugees were cleared by the Myanmar authorities for repatriation, they are still living in Bangladesh in fear of persecution in their home countries. Rohingya issue can be resolved through bilateral talks.

Myanmar, with an area of 676,577 square kms, is almost five times the size of Bangladesh. On the other hand, its population is only 47 million, which is one-third of Bangladesh's population. The density of population in Myanmar is 70 persons per square kilometre, while it is 861 in Bangladesh. As such, per capita share of land in Myanmar is 12 times bigger than that in Bangladesh.

Myanmar is considering leasing out at least 50,000 acres of land in its Rakhine state to Bangladeshi private entrepreneurs for contract farming. The land would be leased to produce crops like paddy, onion, maize, soybean, tea, and sugarcane.

According to a proposal, up to 5,000 acres of cultivable, fallow or wasteland is available for plantation crops, 3,000 acres for fruit gardens and 1,000 acres for seasonal crops for contract farming.

Land tax exemption for a period from two to eight years and income tax waiver for a minimum period of three years is also offered to Bangladeshi private entrepreneurs. An expansion of Bangladesh-Myanmar trade would also see a quick agreement on avoidance of double taxation, a draft of which has already been finalised.

Only 12 per cent of total land area is under cultivation in Myanmar and its liberal policy on leasing out lands for setting agro-based industry is indeed attractive.

Myanmar is endowed with various natural resources, which include gas, limestone, timber and varieties of marine product. Besides recent discovery of 16 TCF proven gas reserves, it has million of tons of limestone deposit in Rakhine and Chin states bordering Bangladesh. Myanmar's bamboo forestry producing 2.2 million tons of bamboo per year, can feed up 25 large paper mills with pulp.

Myanmar's geographical proximity has added much potentiality for setting up joint venture industries for import substitution and also to improve trading opportunities.

Dhaka-Yangon bilateral business relations will provide ample economic benefits to the entrepreneurs from both sides and will strengthen the existing potentials in economic and trade sector.

At present Bangladesh-Myanmar trade is limited only to border trade with both way trade volume standing at an annual $60 million and a massive trade surplus to Myanmar. The direct road link between the two countries opens up new vistas to boost trade.

The horizon of bilateral cooperation in the economic field can be expanded to trading of pharmaceuticals, fertiliser, livestock, consumer goods, minerals, fisheries and tourism.

Dhaka and Yangon have also agreed to sign a memorandum of understanding for a joint techno-economic feasibility study to build a large hydropower plant in Rakhine state to fed Bangladesh's power hungry national grid. The river Lemro in Rakhine state, which is nearly 100 km from Bangladesh, is considered most potential for building a 500-600 mw plant.

Bangladesh is at the crossroads in the critical globalised trade game. Bilateral trade with India has only yielded huge deficit for the country with out any chance of being obliterated in near future.

Bangladesh now needs to look more seriously to its "Look East" policy in the context of changing dimensions of regional trade and economic relations. This has in fact been reflected in signing of the road link agreement with Myanmar having possibility of a greater road network between Bangladesh and the South-East Asian countries.

China's foreign minister reiterated on August 1 Beijing's support to Dhaka's proposal for a trilateral road link project connecting Bangladesh, Myanmar and China. The BCIM (Bangladesh, China, India and Myanmar) have been promoting the idea of greater sub-regional cooperation in the field of trade and commerce since 1999. The proposed Dhaka-Yangon-Kunming road will allow China to ship crude oil through Chittagong port to eastern China.

Bangladesh has became a member of the Treaty of Amity and Cooperation (TAC), an agreement originally mooted by five Southeast Asian countries -- Indonesia, Malaysia, Philippines, Singapore, and Thailand in 1976. Bangladesh's induction to TAC will strengthen its "Look East" policy and will deeper trade relations with the Asean countries.

The deal for direct road link between Bangladesh and Myanmar is indeed a landmark development, paving the way towards better regional connectivity. Bangladesh's "Look East" policy has also received momentum, as the road link is considered a major component to strengthen ties with Southeast Asian countries, including China. The greater connectivity will lead to greater trade and commerce between the countries of this region and Bangladesh should have a good grip on this potentiality.

The signing of the road link deal also underscores the interim government's preference to get the country connected with Asian Highway, which the last BNP-led four party government chose not to sign up to. The proposed road linking Myanmar is considered as a sub-regional road to the Asian Highway, a UN sponsored road project connecting 32 countries across the Asia-Pacific region.

A.N.M. Nurul Haque is a columnist of The Daily Star.