Saarc biz leaders urge tapping intra-regional trade potential

Business leaders from the Saarc countries have stressed the need for harnesssing the untapped potential of intra-regional trade amidst the global recession caused by the Russia-Ukraine war following the Covid-19 pandemic.

During the "Conference on Harnessing Regional Strengths: Saarc's Importance for South Asia's Growth" organised by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) in Dhaka on Wednesday, they highlighted the significant role that Saarc countries can play in driving economic prosperity in the region.

In his keynote presentation, Dr Rajan Sudesh Ratna, deputy head of the Escap subregional office for South and South-West Asia, shed light on the multilateral trade among Saarc countries.

He revealed that Bangladesh's current export volume to South Asian countries amounts to $532.70 million, with a potential for further growth of $7.2 billion. In other words, Bangladesh alone possesses a remarkable 93.11% unexploited export potential within the Saarc region. All member countries of Saarc share similar untapped export potential.

Rajan Sudesh said "Prices of oil and food products have increased due to the effects of Covid and war, causing a surge in inflation. Currency has weakened, import difficulties have increased, and the cost of trade is very high. But there is still a lot of lack of cooperation among Saarc countries, and investment flow is very low."

In light of this situation, he stressed the importance of utilising the potential of Saarc countries to drive economic growth.

He highlighted the need for enhanced cross-border connectivity in areas such as energy, transport, and ICT, and said the private sector will have to lead from the front in this regard.

FBCCI President Jashim Uddin also underlined the vast untapped potential of intra-regional trade, which currently stands at a meagre 5%.

He asserted that the private sector holds the key to unlocking this opportunity by venturing into new markets, diversifying product portfolios, fostering cross-border business collaborations, and addressing trade barriers, including non-tariff barriers.

To provide support in this regard, he proposed the establishment of a B2B (business-to-business) mutual trade facilitation committee under the Saarc Chamber of Commerce and Industry.

Moreover, he emphasised that the private sector of Saarc countries plays a crucial role in advocating for a supportive ecosystem within the region. To achieve this, he called for the activation of working groups within the Saarc Chamber of Commerce and Industry, along with strengthening its capacity to drive initiatives that foster a business-conducive environment.

These initiatives include improving transport and logistics infrastructure, harmonising trade procedures, promoting digital connectivity, developing regional supply chains, and encouraging collaborations within the private service sector, such as tourism, explained Jashim Uddin, who is going to officially assume his role as the president of the Saarc Chamber today.

Sanjay Basu, vice president of the India Bangladesh Chamber of Commerce and Industries (IBCCI), emphasised that while Bangladesh and India are both exporting medicines to the world, the export scenario within Saarc countries remains unsatisfactory.

He emphasised effective utilisation of the existence of opportunities.

Business representatives from other Saarc countries also participated in the event.