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Poor shipping links, weak deals undermine Bangla-Pak trade

Seminar told

Star Business Report
Negative attitudes, poor shipping links and weak trade agreements are undermining trade between Bangladesh and Pakistan, a seminar in Dhaka was told yesterday.
"Traders are simply not interested in going to Pakistan to panic ipate in trade fairs," Abdur Rahman, Director (Trade Policy), Export Promotion Bureau of Bangladesh, said.
The negative attitude is reflected in the low level of exports to Pakistan that reached just $61.1 million in FY2006-07. Despite the closeness and shared history Pakistan does not feature among Bangladesh's top 15 export destinations.
Moreover, any increase in trade between the two countries in recent years has been due to rising imports from Pakistan as the Bangladeshi garment sector sources raw materials from its South Asian neighbour, speakers said.
"Ships come to Chittagong from Karachi through Singapore with goods but return empty. This enhances trading costs as well as discouraging businessmen." RoubinaTaufiq Shah. Commercial Secretary, Pakistan High Commission in Dhaka, said.
The seminar titled 'Bangladesh-Pakistan Trade Opportunities under Safta' was held at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
The situation is not helped by the protectionist attitudes of both governments who are ready to place potential import items on 'negative lists' under the South Asian Free Trade Agreement, denying them duty free or low tariff access.
Dr Mostafa Abid Khan, joint chief, Bangladesh Tariff Commission, said that potential
Bangladeshi export products like woven garments, knitwear, tea and jute products are listed in the Pakistani negative list while potential Pakistani exports such as rice, fish, fruits, cotton yarn, readymade garments and bed wear are listed in the Bangladeshi negative list.
"It is not thepolitical wifi but the bureaucracy which is one of the main reasons that Safta is a failure," Manzur Ahmed, former director of FBpCI, said. He blamed the lengthy bureaucratic negotiations during the past decade for die failure.
"Businessmen have had little contribution in the important
trade negotiations of the region," Ahmed added.
"The textile sector could be the centre of mutual benefit in signing a bilateral free trade agreement as the product is the major export item of both the country," Dr. Safdar Sohail, director general, Foreign Trade Institute of Pakistan.
Bangladesh export products worth only USS 61.1 million in the 2006-07 fiscal to Pakistan, While ir import products worth $195.2 million.
The trade deficit was $134.2 million, which is heavily tilted to
Pakistan.
Raw jute, tea, coil assembly, cut flower, tobacco and woven garments are the major products Bangladesh exports to Pakistan while it imports textile and textile articles, machinery and mechanical appliance, vehicles, plastic articles and raw hide among the major products from Pakistan.
^BCCI Administrate^ Syed tfahi. Pakistan ‘High Commissioner in Dhaka Alamgir Bashar Khan Babar, former secretary of Saarc QAM Rahim participated in the seminar.