Business Leaders from the SAARC countries on February 18 adopted a 13point policy reform agenda to achieve intraregional trade of 20 billion dollars by 2010 and reduce the cost of doing business. The Mumbai Declaration adopted at the two-day Leaders Conclave which ended here made a resolve to implement SAFTA, in letter and spirit, prune the number of items on sensitive lists, remove non-trade barriers and regularise and liberalise trade in services.

To achieve the objectives, the countries of seven-member grouping would also make efforts to reduce the cost of doing business in South Asia while adopting a regional investment protocol to promote intraregional investments and joint ventures in the region. The declaration resolves to build world class infrastructure at land border ports of the SAARC nations. It would also work towards adopting an Open Sky Policy to improve air connectivity by ensuring direct flights between capitals and other major cities of SAARC and giving access to private airlines to operate in the region.

The SAARC nations would promote energy cooperation to enhance production and transmission among member countries, thus reducing cost and expanding scope of cross-border water cooperation.
The declaration charts a plan to harmonise standards and customs procedure and ensure mutual recognition of certificates. To address the issue of smooth movement of people within the region, the declaration suggested providing easy and long-term multiple visas to businesspersons and tourists.

Bangladesh to export 6m pieces of apparels to India under SAFTA

Bangladesh is completing the procedures to export six million pieces of apparel items to India under the South Asian Free Trade Agreement (SAFTA). The India has already sent a draft memorandum of understanding (MoU) to the concerned authority of Bangladesh for import of apparel under the SAFTA. The commerce ministry will convene an inter-ministerial meeting by the first week of the next month to finalise the strategy of the government for negotiation with the counterpart.

The government-to-government negotiation will start after finalising the strategy in line with the draft memorandum of understanding (MoU) as proposed by India earlier. In November last, India sent the draft MoU with some terms and conditions for Bangladesh to export the apparels items under the SAFTA. The commission had planned to initiate negotiation with India in December last, but it was not possible due to political unrest.

In the draft MoU, New Delhi has agreed to offer preferential access to six million pieces of garments provided the fabrics of three million pieces are imported from India and the rest of the quantity can be made available either from Bangladesh’s own sources or from India. However, the number of one category of garment should not be more than 1.5 million pieces. The MoU stipulates that the export of the garments should be transported only through land customs at Petrapole, Ghojadanga, Gede, Lalgola, Changrabandaha, Panitanki, Hili and Mahadpur.