Trade expansion hinges on harmonised customs rules

Trade experts from BIMST-EC member countries yesterday underscored the need for harmonisation of customs procedure and quality standards for increasing trade and investment among the sub-regional trade bloc members.

They also called for promoting intra-regional banking relations and exchange information through electronic media to make Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Cooperation (BIMST-EC) a meaningful trade bloc.

The observations came from the second day's working sessions of the three-day expert group meeting of BIMST-EC that began in Dhaka on Monday.

"The group members have decided to initiate cooperation in some major sectors. But it is not possible without harmonisation of customs procedure and banking facilities and exchange of information," Professor MA Taslim, chairman of Bangladesh Tariff Commission, told newsmen after a working session yesterday.

The sub-regional economic bloc earlier decided to initiate cooperation in textile and clothing, drugs and pharmaceuticals, gems and jewellery, horticulture and floriculture, processed food, automotive industry and parts, coconut and spices, and rubber, tea and coffee but there is no significant breakthrough in these areas.

Bangladesh mooted the idea of BIMST-EC free trade area, identifying it a tool for increasing cooperation in trade and investment among the member countries. The first group meeting on trade and investment was also held in Dhaka in November 1999.

Earlier, speaking at the opening session of the BIMST-EC expert group meeting, Commerce Secretary Suhel Ahmed said geographical proximity could not help the BIMST-EC sub-region to boost trade and investment among its members.

Currently Bangladesh's export to BIMST-EC region is a little over 2 percent of her total exports while her import accounts for around 12 percent of total imports, he mentioned.

He said despite its thrust on the major markets in the USA and EU, Bangladesh has to find potential new markets like CIS, Middle East, South and Southeast Asia.