Seven South Asian countries will sit in Kathmandu October 14 to discuss details of the measures needed for establishing a free trade area in the region.

A three-member Bangladesh delegation representing the foreign and commerce ministries and Bangladesh Tariff Commission will

participate in the four-day expert committee meeting.

Bangladesh's position for the meeting was finalised yesterday. It basically wants that the four regional least developed countries (LDCs) Bangladesh, the Maldives, Nepal and Bhutan -- be kept out of anti-dumping, countervailing and safeguard measures. Besides, Bangladesh will propose allowing 20 per cent value addition in any product to be entitled to free trade among the countries and ask three developing countries -- India, Pakistan and Sri Lanka -- to form a special fund to finance the revenue loss the LDC partners will suffer due to free trade.

The strategy was finalised at an inter-ministerial preparatory meeting with Commerce Minister Amir Khosru Mahmud Chowdhury in the chair at the ministry conference room.

"It is not possible for us to agree on issues that may cause substantial revenue loss. Besides, Bangladesh would not agree to any issue that differs from its WTO position," Khosru said after the meeting.

According to commerce ministry sources, if the Kathmandu meet succeeds in preparing a framework for the proposed free trade bloc, it may be placed in the next South Asian Association for Regional Cooperation (Saarc) Summit slated for January next in Islamabad.

The 1998 Saarc Summit agreed to establish a Committee of Experts (COE) for drafting a comprehensive trade regime on South Asian Free Trade Area (Safta).

"The expert committee made considerable progress in preparing the draft agreement for free trade area," said a commerce ministry official.

He said the impact of such an area on the regional LDCs and safeguard measures needed for them are yet to be agreed upon.