The trade ministers of Saarc countries are going to meet in Colombo tomorrow to decide on reducing non-tariff barriers and withdrawing all duties by 2021.
The reduction or removal of trade barriers is expected to help member countries like Bangladesh boost their regional trade.
There may be bilateral talks on the sidelines to supply electricity from the surplus country to the deficit ones in the region.
Nepal, Bhutan and some Indian states are said to have surplus electricity production.
Commerce Minister GM Quader is leading a five-member Bangladesh delegation to the meet called “SAFTA Ministerial Council.”
Prior to the meeting, SAFTA expert groups are now holding meetings. Started Tuesday, the experts continue their meet till today.
Sources said consultants will be appointed to identify and withdraw non-tariff barriers and to provide progress reports on implementing the zero-tariff regime by 2021.
The major non-tariff barriers include local tax, testing certificates and court orders. Bangladeshi exporters are facing non-tariff barriers in the neigbhouring India.
Meanwhile, Bangladesh is set to import 250 megawatt of electricity from India from October to mitigate its power shortage of over 2000MW. Bangladesh can also avail of electricity from Bhutan at cheaper rates after building Saarc power supply grid. Bhutan generates 97% of its 3000MW power from hydro plants.
Meanwhile, despite efforts to increase trade volume among Saarc countries, Bangladesh exports to Saarc nations declined marginally in the just concluded fiscal (2012-13).
The exports to Saarc countries is yet to get a boost, sources said, adding that it remained almost static below 3% of the country’s total export earnings. Lack of trust, non-tariff barriers, under-developed port facilities, non-diversification of export items and lack of infrastructure facilities are considered to be the main reasons behind the lackluster performance.
According to Export Promotion Bureau (EPB), Bangladesh’s exports to Saarc countries totaled $690m in the last fiscal against $691m in the previous year. The amount represents 2.55% of the country’s total exports as against 2.84% in the previous fiscal.
Bangladesh’s export to India, the EPB figures showed, was the highest among the Saarc countries in last fiscal amounting to $564m, about 82% of the total export in the region. The export earnings from India in fiscal 2011-12 were $498m. The amount was $512.5m in the previous year. The lowest amount of export among the SAARC countries in last fiscal went to the Maldives, amounting $1.5m. The amount was $1.8m in the previous year.
Except India, exports to most of the countries declined drastically during the period with Bhutan and Nepal making the highest falls. Bhutan and Nepal experienced a negative growth of 80% and 57% respectively. Goods worth about $1.8m were shipped to Bhutan in last fiscal against $9m during the same period in the previous fiscal. Nepal also received goods worth about $26.4m as against $62m a year ago.
Exports to other Saarc destinations: Sri Lanka $23.7m in last fiscal against $42.6m in the previous year, Afghanistan $3.6m against $3.5m and Pakistan $68.7m against $ 73.2m in the previous year.
