NEW DELHI. July 6. Bangladesh today supported the creation of a Preferential Trading Arrangement (PTA) in the run up to a Free Trade Area (FTA) with India. Myanmar. Sri Lanka and Thailand and road and rail links among these countries for fostering economic cooperation in the region.

Addressing the third meeting of BIMST (Bangladesh. India. Myanmar. Sri Lanka and Thailand) Economic Cooperation at the ministerial level, Bangladesh Minister of State for Foreign Affairs Abul Hasan Chowdhury said "we support the idea of formation of an inter-governmental group to prepare a concept paper on creating a preferential trading arrangement amongst BIMST-EC member-countries.

The PTA is an intermediary stage ahead of free trading area among BIMST-EC countries. The idea was put forward by the five-member grouping's Economic Forum when it met for the first time three days back in the Indian capital.

Stating that regional cooperation provides the basis for economic development of BIMST-EC countries. Chowdhury said the coming together of this economic grouping could

serve as a bridge between SAARC and ASEAN which has enjoyed one of the highest growth rates in the world.

Emphasising the potential of BIMST-EC to work as a link between South Asia and South East Asia, he said an integrated transport system linking Bangladesh. India. Myanmar. Sri Lanka and Thailand would have a “direct and positive effect in the process of development of the Economies of these countries."

The Economic Ministers of B1MSTEC-EC. at their last meeting here in April this year, agreed to expedite work in promoting road and rail links among member-countries. Chowdhury said, adding Economic and Social Cooperation in Asia and Pacific (ESCAP) has already taken steps to promote , Trans Asian Railways and Asian Highways Projects.

“These links will be through our countries and will be of great Importance to us." he asserted. adding transport and communication are critical for development of economic cooperation In the region.

Earlier. Inaugurating the BIMSTEC ministerial meeting. Indian External Affairs Minister Jaswant Singh asked the member countries to tap the

vast potential for joint cooperation in agriculture, information technology, food processing. infrastructure and other areas.

The principle challenge facing the grouping was to reduce the gap between promise and delivery'. Singh said. He said globalisation had not adequately addressed the pressing needs of developing infrastructure and basic amenities in developing countries.

UNB adds: Later, the BIMSTEC ministerial meeting endorsed the idea of a free-trade area or preferential trading arrangement among the member countries.

The Idea was floated at the BIMSTEC Economic Forum meet on July 3. that also recommended forming a Joint Chamber of Commerce to promote private sector-government interaction under the bloc.

In a Joint statement at the end of the meeting, the BIMSTEC members appreciated the progress made in the six sectors identified so far for cooperation and hoped action plans for each sector and sub-sector would be monitored for early implementation.