Direct shipping line needed with Myanmar, says chamber

Bangladesh needs to demonstrate strong drive in making coastal shipping line operational with Myanmar and establish banking channel to tap the huge business potential offered by the Southeast Asian nation, said a bilateral trade body.

Connectivity should be given priority during the two-day eighth joint trade commission meeting between Bang-ladesh and Myanmar to be held in Dhaka tomorrow, it said. “We need formal transaction channel and direct shipping connectivity with Myanmar urgently. This is the right time to settle these,” SM Nurul Hoque, president of Bangladesh-Myanmar Chamber of Commerce and Industry, told reporters at a city hotel yesterday.

“Trade relations between Bangladesh and Myanmar will reach new heights once the coastal shipping line is launched,” Hoque said.

Other countries which are far away from Myanmar compared to Bangladesh are doing good business with Myanmar but Bangladesh, being a close neighbour, is yet to utilise the opportunity, said M Musleh Uz Zaman, executive director of the chamber.

“We can do very good business with Myanmar. We just need to address the issues on a priority basis. I think it is right time to give a big push,” he added.

A coastal shipping line between the two countries will help Bangladesh send goods, including garment items, to Myanmar directly.

Now Myanmar's customers buy garment items made in Bangladesh from Thailand, according to the chamber.

“A draft standard operating procedure has already been finalised,” Zaman said.

Hoque said there should be coordinated efforts from the relevant ministries to put required facilities in place for smooth business operation between the two countries.

“We also need some measures to build confidence.”

He said Myanmar is the current chair of Asian Clearing Union (ACU), which is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis.

“This is the right time to formalise the payment channel in line with international standards. Few foreign banks have also opened up branches in Myanmar,” Hoque said.

He said border trade ceiling needs to be increased to a proposed amount of $100,000 from the current ceiling of $50,000 until the execution of banking channel transaction.

Hoque said issues related to cultural exchange, agriculture knowledge transfer, investment issues and signing free trade agreement between the two countries can be discussed.

He said Bangladesh can export garment, garment accessories, pharmaceuticals, electrical and electronic items and building materials to Myanmar.

There is a huge flow of tourists into Myanmar from around the world and Bangladesh can be added as an extended destination for the tourists, Hoque said.

“Bangladesh can take the advantage by allowing easy visa and access.”

Bangladesh imports spices, lentil, fish, onion, garlic and ginger from Myanmar at cheap rates.

Myanmar is rich in wood; once the coastal shipping line agreement is in place, Bangladesh can import wood from this country to meet the demand of the local furniture sector.