ON August 31, the Royal Thai Embassy observed the 36th year of Bangladesh-Thailand diplomatic relations. Thailand's Ambassador Mr. Chalermpol Thanchitt took the initiative, with the strong support of Thailand's Ministry of Foreign Affairs, to organise the event.
Apart from the inaugural and closing sessions, the event was divided into four sessions under the following titles: "Ties of the two countries -- bilateral and beyond," "Trading with Thailand towards $1billion target," "Heading to Halal hub food and dinner," "Destination and development."
The subjects chosen for the sessions are not only relevant but also have potential for further development through partnerships at both government and private sectors.
Bangladesh Foreign Secretary M. Touhid Hossain and the Deputy Permanent Secretary for Foreign Affairs of Thailand, Mr. Charivat Santaputra, addressed the inaugural session. Mr. Santaputra came to Dhaka with an eight-member delegation that included some representatives from the academic and private sectors.
Later in the morning, a panel of Thai officials of the Foreign Ministry provided an account of the current and projected state of relations between the two countries. The Thai ambassador talked about his "dreams" for various aspects in bilateral relations. Everyone agreed that his "dreams" could be realised if areas of cooperation could be rightly identified and focused and export duties were lessened on both sides.
In the evening, Bangladesh Adviser for Foreign Affairs Dr. Iftekhar Ahmed Chowdhury attended the reception and made apt remarks on bilateral relations. The presence of distinguished senior officials from both countries at the inaugural session, together with the participation of the Bangladesh foreign affairs adviser at the reception, reflected the importance both countries attached to relations between each other.

Dynamics of bilateral relations
Thailand is four times the size of Bangladesh, with nearly 65 million people. Thailand recognised Bangladesh on February 16, 1972, and developed steady bilateral relations.
People-to-people relationship has been the basic bedrock of bilateral relations. They exist independently of governments and policies. Relations with erstwhile East Pakistan (now Bangladesh) were developed, and Thai Airways commenced flights to this part in 1965. Their Majesties the King and the Queen of Thailand visited this territory long before independence.
Many high level visits took place between the two countries. The first visit by President Ziaur Rahman took place in 1978, and it provided an impetus to the bilateral relations.
Since 1979, numerous visits at various levels from both sides have consolidated cooperation between the countries. Bangladesh prime minister reciprocated the visit of the Thai prime minister in 2004. Since then, the private sectors began a cooperative journey that has led to joint ventures.
At the government level, a joint economic commission was established to identify areas of cooperation. The commission is expected to meet in 2009. It acts as a facilitator for both government and private sector initiatives on joint ventures projects in such areas as textiles, fishery, garment, construction, physical infrastructure on multi-modal transport, pharmaceutical, agro-food industry and energy.
Some of these joint ventures are being planned and processed. Cooperation between small and medium enterprises of both countries has been taking place, including exchange of technological know-how so as to compete in the globalised market. About 40 Thai companies are now in Bangladesh in either joint ventures or with investment plans.
The Thai Promotion Council and Bangladesh Export Promotion Bureau signed an MOU to facilitate the exchange of products between the two countries. There have been at least 25 agreements between the two countries to cover almost all types of economic and cultural cooperation.
Bilateral trade has increased significantly since 2001. During 2000-2001, the total volume of trade stood at $230 million. Last year, the total volume reached $500 million, although Bangladesh's exports to Thailand were comparatively much smaller than those of Thailand. While Bangladesh's imports include aluminum, fabrics, leather products etc. the exports consist largely of shrimps, leather and fertiliser. It is expected that within the next five years, the two-way trade would reach $1 billion and cover new areas.

How to increase economic cooperation?
The deputy permanent secretary of Thailand in his address rightly indicated that partnership could only take place if both parties knew each others' capabilities and, in order to be aware of such capabilities, they had to know each other very closely.
Another important fact is that a country should specialise in products and services in which it has a comparative advantage. It should trade with another country for products in which that country has a comparative advantage. In this way, both countries become better off and gain from trade. Bangladesh-Thailand trade and economic cooperation may identify the areas of comparative advantage.
Although overall economic relationship has been initiated, it can be much improved given the potential. Thai and Bangladeshi private sectors need to exploit each other's potential fully. There is a need for action to establish and develop an information base to set the stage for economic cooperation.

Other areas of cooperation
Thai food has become very popular in Bangladesh. A few enterprising Bangladeshis have opened restaurants in Bangkok to cater to the needs of South Asians in Thailand. Bangkok is also the hub of many UN organisations, and expatriate Bangladeshis enjoy the facilities provided by Bangladeshi restaurants.
Tourists from Bangladesh have increased considerably, and nearly 47,000 Bangladeshi visitors have been to Thailand. Besides, Bangladeshis visit Thailand for medical treatment, and the market is booming.
Thailand can invest in construction of hotels in Dhaka and Chittagong, and in the service sector, such as hospitals, and shipping. Thai investment or joint ventures on fabricated metal products, machinery and transport such as cars and bus are most welcome.
Ambassador Thanchitt has indicated that gradually the need for visa for Bangladeshis will be eliminated so as to boost the people-to-people contact. He said that visa for medical treatment could be organised within an hour or so.

Economic diplomacy
The observance of the anniversary demonstrates that the the days of traditional diplomacy are over. Economic diplomacy is the order of the day. It deals with "bread and butter" issues and has to be pursued vigorously. The Royal Thai Embassy did that exactly through this event, and it is a commendable initiative.
Economic diplomacy includes advocating of a country's business interests. It requires technical expertise that analyses the effects of a country's economic situation on economic interests of other countries. Flexibility, sound business analysis, and strong business skills are needed in the execution of economic diplomacy.
One of the features of economic diplomacy is that private sectors need to be involved in the decision-making to sell products in the global or regional market. Since productivity per hour is the main ingredient in making a product competitive, modern industrial technology is important. That is why government and private sector cooperation is imperative.
Thailand is Bangladesh's near neighbour. Bimstec is the regional organisation in which both countries are members. Economic cooperation may be developed in any of the 13 Bimstec priority sectors -- trade and investment, technology, energy, transport and communication, tourism, fisheries, agriculture, cultural co-operation, environment and disaster management, public health, poverty alleviation and counter-terrorism and transnational crimes. A study shows a potential of $43 to $59 billion trade under Bimstec Free Trade Agreement.
Bangladesh's "Look to the East" and Thailand's "Look to the West" policies converge, and a win-win-situation may develop for both countries if economic partnership is pursued in right earnest.

Barrister Harun ur Rashid is a former Bangladesh Ambassador to the UN, Geneva.