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Set up Saarc customs commission to boost intra-regional trade

Local businesses urge Pak premier

Star Business Report
Bangladesh business community yesterday urged Pakistani premier to take initiatives to establish a Saarc (South Asian Association for Regional Cooperation) customs commission to boost intra-regional trade.
They said the commission will facilitate harmonisation of standards, customs clearance and reciprocal recogni tio n of tests and simplification of documentation for doing away with non-tariff and para-tariff barriers.
The business leaders made the call at a meeting with Pakistan Prime Minister Shaukat Aziz, who ended a two- day Bangladesh visit yesterday.
A meeting source said Pakistan PM, also Saarc chairman, expressed his utmost optimism to sign a free-trade agreement (FTA) with Bangladesh. "Pakistan is keen to enter into a FTA with Bangladesh to boost bilateral trade and strengthen economic cooperation," the prime minister was quoted as saying by the source who attended the meeting.
The FTA will spur business and trade between the two friendly countries, the PM was learned to have told the meeting. Besides, Pakistan is willing to open bilateral shipping services to promote bilateral trade, added Aziz, according to the source.
The Pak leader also stressed the need for expansion of trade in the region through Safta (South Asian FreeTYade Area), which is scheduled to come into being from January 1, 2006.
President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Abdul Awal Mintoo led the business team In the meeting, organised by Pakistan High Commission in Dhaka at Pan Pacific Sonargaon Hotel.
"’The total trade volume of seven South Asian countries amounts to $140 billion but intra-regional trade Is only $6.5 billion meaning intra-regional trade is below five percent. Intra-regional trade in EU is 72 percent, Asean 43 percent and Nafta 49 percent," Mintoo said.
The FBCCI president also urged Aziz to move forward with commissions on trade and investment and tourism, creation of Saarc development fund, abolition of visa requirement among Saarc states and development of transport protocol to facilitate movement of goods.
He also called for upgradation of Saarc secretariat to strengthen regional cooperation and studying possibility of forming a nonlegislative South Asian parliament and studying possibility of introducing a common currency.
He also urged the Pakistan government to allow duty-free access of all 121 Bangladeshi items. Bangladesh proposed a list of 121 items but Pakistan only permitted raw jute to any quantity and tea up to 10,000 tonnes.
Mentioning Pakistan's cotton resources, he also urged Pakistani businessmen to set up textile mills to meet existing demand of three billion metres of fabrics in Bangladesh.