Deeper ties among Bangladesh, India and Japan to boost trade

Triangular cooperation among Bangladesh, India and Japan can boost trade, business, and economic growth as the three have similarities in climate, culture and commerce, said an international trade analyst yesterday.

Such a triangular relationship could also create more opportunities for Bangladesh if the proposed Comprehensive Economic Partnership Agreement (CEPA) between Bangladesh and India is signed, said Prabir De, a professor at the Research and Information System for Developing Countries (RIS) in New Delhi.

This is because a CEPA between India and Japan has been in place since 2011.

So, if Bangladesh and India sign a CEPA, there will be a situation akin to a free economic zone and all three countries can enjoy good business, De said.

He was addressing the first episode of a webinar titled "Trade Winds: Emerging Contour of Bangladesh-India-Japan Triangular Cooperation" organised by SANEM International Trade Centre.

De added that Bangladesh had developed a lot of infrastructure such as the Matarbari deep seaport alongside railways, expressways and bridges but could not sustain them alone.

Bangladesh needs to connect with neighbouring countries for sustainability, which could be achieved through tripartite cooperation, the analyst also said.

Bangladesh, India and Japan have similar rules of law and government, and the nations are in talks with each other about such agreements, he said.

The three countries responded to the severe fallouts of Covid-19 and the war between Russia and Ukraine together, he added.

For instance, if Bangladesh's export benefits dissipate following its country status graduation to a developing country in 2026, the tripartite cooperation could help attract investment in trade and commerce, he said.

Bangladesh can easily do good business with India's northeastern region, he said.

He added that Japan's involvement in development projects in India's northeastern region created another scope for tripartite cooperation.

The analyst particularly said Bangladesh has already become a favourable sourcing destination for globally renowned clothing brands such as Zara, H&M, and Uniqlo.

He also said Bangladesh is an exporting nation and there are a lot of opportunities to export more goods to Japan and India if there is tripartite cooperation.

Bangladesh, India, and Japan boast strong cultural, economic, and strategic ties while Japan and India are key development partners for Bangladesh. The India-Bangladesh sub-region is a focal point for regional initiatives like BBIN and BIMSTEC, he added.

Both Japan and India are heavily invested in Bangladesh's infrastructure, and free trade agreements are being explored.

The three countries have many challenges which can be solved together to ensure more trade and business, he added.

They can also use maritime connectivity to enhance trade growth, he said, adding that the Agartala, Monipur, and northeastern parts of India could be good trading destinations for Bangladesh.

Bangladesh can also send goods through roadways over the Ashuganj border more easily, De said.

Selim Raihan, executive director of SANEM, said Bangladesh needs to develop the proper business environment and a lot of infrastructure to attract investment.

Matarbari is an excellent project, he said, adding that Bangladesh needs to address problems in special economic zones to bring in more investors.