The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka has urged the SAFTA Ministerial Council (SMC) to make a thorough review of the implementation of the SAFTA agreement with a view to assessing its role in expanding trade among the SAARC countries. The chamber said this through a press release as the SMC is due to hold its second meeting shortly.

It said confusion has been created by a World Bank study recently on bilateral free trade negotiations between India and Bangladesh. MCCI firmly believes that South Asian Free Trade Agreement as well as bilateral free trade between India and Bangladesh will be beneficial to Bangladesh.

Any hesitation and delay in this regard will deprive the Bangladeshi exporters of taking advantage of market access. Tariffs on Bangladeshi products have already been reduced by 33 percent to 40 percent by India, Pakistan and Sri Lanka. The reduction provides ample scope for Bangladeshi products to secure market.

It stressed that Bangladesh highlight the nontariff and paratariff related problems at the next meeting of the SMC. The chamber suggested that Bangladesh push for complete elimination of tariffs by 2008 and at the same time, the implementation of the tariff concessions given in favour of LDCs by lndian, Pakistan and Sri Lanka.

The MCCI also suggests that a decision should be taken by the SMC to strictly follow the procedures for issuance and verification of certificates of SAFTA Rules of Origin so that the procedures adopted by the issuing and accepting authorities do not create unnecessary obstacles.

Euro against yen reaches all time high in Asian trade

The euro hit an alltime high against the yen in Asian trade on January, 24 with the Japanese currency under heavy selling pressure with no sign in sight of higher local interest rates, dealers said. The euro breached the upper 158 yen levels, the highest since the single units debut in 1999, before slipping to 158.41 in Tokyo afternoon trade, still up from 158.00 in New York late 23.

The dollar was barely changed at 121.60 yen compared with 121.62 in New York. The euro inched up to 1.3032 dollars from 1.3025. The pound firmed to 1.9822 dollars from 1.9811 after briefly reaching near 15year highs of 1.9900 dollars Tuesday on the view that British interest rates are likely to rise further in a strong economy. The euro gained after European Central Bank officials Lorenzo Bini Smaghi and Christian Noyer said interest rates would need to rise if economic growth proves solid.