Saarc trade hurt by lack of political will

A lack of political will and positive mindsets of governments are the hurdles to intra-regional trade between South Asian nations, analysts said at a discussion in Dhaka yesterday.
They suggested removal of political conflicts and non-tariff and para-tariff barriers to boost trade in the region.
The discussion on “South Asia regional economic cooperation: Constraints and way forward” was arranged by state-sponsored thinktank Bangladesh Institute of Development Studies (BIDS) at its office in Dhaka.
Dr Mustafa K Mujeri, director general of BIDS, chaired the discussion addressed by experts from Bangladesh, India and Pakistan.
Prof Rehman Sobhan said South Asia has huge potential to develop regionally. He referred to the billion-dollar business opportunities in transport and communication.
Intra-regional trade in this region has remained low -- at 4.7 percent in 2008 -- in proportion to world trade, while nearly a third of the world population lives here. India is dominating intra-Saarc trade holding a 72 percent share.
But intra-regional trade in Asean (Association for Southeast Asian Nations) is nearly 40 percent, while it is 58 percent for NAFTA (North American Free Trade Agreement).
Annisul Huq, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), also blamed the lack of political will for poor economic cooperation in South Asia. “Non-tariff barriers are the biggest problem in the region."
Rajiv Kumar, director and chief executive of ICRIER, said non-tariff barriers, connectivity and energy issues emerged as the main issues in developing cooperation in the region. He also identified lack of political will as the major deterrent in South Asia.
Kumar said a taskforce has been set up by the Ministry of Commerce in India to address non-tariff barriers faced by its partner countries.