Country’s top business leaders have urged the government to take immediate move for the withdrawal of Indian embargo on acceptance of Bangladesh’s investment in India. Such a ban since Bangladesh’s independence bars the local entrepreneurs from making any investment in the neighbouring country, they said, also pointing to the central bank’s rigid policy, which, according to them, hinders the cross-border investment.

The call came at a meeting organised by the Metropolitan Chamber of Commerce and Industry (MCCI) at its office on May 6 in Dhaka. The meeting, attended by Foreign Affairs Adviser Iftekhar Ahmed Chowdhury as the chief guest, deliberated on implementation of the offer made by the Indian government at the Saarc summit for duty-free access of the commodities produced by the least developed countries in the regional forum to the Indian market.

The adviser said, “We must discuss the issue bilaterally so that investment embargo for the Bangladeshi businessmen would be withdrawn by the Indian government”. Chowdhury described the embargo as a ‘historical restriction’ that was imposed by the Indian government during the political transition in the sub-continent before Bangladesh’s emergence as an independent nation. The adviser assured the business leaders of taking measure to amend the local policy to facilitate cross-border investment, if it is necessary.

Presided over by MCCI President Latifur Rahman, the meeting was also addressed by Mahbubur Rahman, president of International Chamber of Commerce-Bangladesh (ICC-B), Mostafizur Rahman, research fellow of Centre for Policy Dialogue (CPD), Fazlul Haq, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and C K Hyder, secretary general of MCCI.

The metropolitan chamber chief emphasised finalisation of an agreement on investment promotion with the letter and spirit of SAARC. Referring to the Indian state minister for commerce, Joy Ram Romesh, Latifur Rahman said India accepts investment from all countries, except Pakistan and Bangladesh. “There might be problems between India and Pakistan. But it is not rational if other countries suffer for the same reason,” he opined. He however mentioned that the Bangladesh Bank’s policy also makes hindrance to investment in other countries. Just trading is not enough to get benefit from a regional forum like SAARC (South Asian Association for Regional Cooperation), he said, suggesting that an inter-regional investment climate is needed.

Mostafizur Rahman said since the Indian prime minister made a commitment during the 14th SAARC Summit in New Delhi to downsize the SAFTA negative list to give benefit the LDCs among the SAARC member countries, Bangladesh government should lay emphasis on inducting the apparel sector in the Indian positive list. Otherwise, Bangladesh would not get something significant from the South Asian Free Trade Area agreement, he said.

Indian Prime Minister Manmohan Singh also announced at the SAARC Delhi meet to provide duty-free and quota free market access to all SAARC LDCs, including Bangladesh. On such a market access, the MCCI president said this access cannot ensure free flow of goods into the Indian market, unless non-tariff and para-tariff barriers are removed. “We strongly feel that the government should urge the Indian government to withdraw all para-tariff barriers and also special duties and levies imposed in March 2006,” he suggested.

Responding to the issues raised in the meeting, the foreign affairs adviser said the present government is working on inclusion of Bangladesh’s apparel sector in the Indian positive list. He asked all the chambers to involve in the process. On non-tariff and para-tariff barriers, Iftekhar Ahmed Chowdhury said, “These create major impediments to expanding our export to the neighboring countries”. But the trade barriers would be removed phase by phase through cooperation with India, he hoped.