"We think the rules of origin (RoO) may be 25 per cent and 20 per cent value addition for general and ready-made garments/woven of Bangladesh respectively, which can be 40 per cent for Pakistan," Mir Nasir Hossain, president of FBCCI, told a dialogue on 'FTA with Pakistan: Reaping benefits for Bangladesh' jointly organised by the FBCCI and Pakistan High Commission in Dhaka.

Hossain said the RoO is 30 per cent value addition for least developed countries, including Bangladesh, in the Safta agreement. "It should be better in the FTA than the Safta," he added.

Manzur Ahmed, adviser of FBCCI, and Roubina Taufiq Shah, commercial councillor of Pakistan High Commission, presented two keynote papers at the dialogue attended by leading businessmen.

The FBCCI president also mentioned several other points such as launching of direct shipping link, identification of negative list, special and differential treatment, resolving non-tariff barriers and harmonisation of laws that are needed to be addressed to reap benefits from the proposed FTA (free trade agreement) between the two countries.

Participants of both countries agreed that regional trade agreements, such as FTAs, have become a major item on the menu of regional strategies targeting economic development.

They also said many countries in the world have entered into new agreements with various regional and bilateral partners, and are shelving the old agreements and renaming those to better reflect present-day terminology.

Hossain said success of the FTA would depend on the political will of the leaders of the two countries. "The interest for the sustenance of the FTA must be generated from within the parties. Pakistan has to be more accommodative in this case," he noted.

He also opts for formation of committees comprising officials and businessmen to look at the issues for facilitating trade under the FTA.

Regulations, such as licensing, registration, banking and infrastructure facilities need to be addressed properly, he added.