CEPA will be a win-win for both countries
We already have various initiatives with India with respect to enhancing trade, investment and connectivity. We have inked three lines of credit agreements with it. We have dedicated two economic zones to Indian investors.
Efforts are also being made to establish a subregional cooperation with India, Nepal and Bhutan and we have signed the BBIN Motor Vehicles Agreement. We have a coastal shipping agreement with India and are making a rail link with it.
I think now is a very opportune time to deepen our bilateral relations. The signing of the Comprehensive Economic Partnership Agreement (CEPA) can be a win-win for both countries as such a deal covers trade, investment, connectivity, logistics, and various policy coordination issues.
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We have to keep in mind that India is now unilaterally giving us a zero-tariff facility in its market. But once we sign CEPA, we will have to shift to reciprocity from non-reciprocity. In that case, if there is a two-track policy for Bangladesh, as a relatively weaker economy, with regard to trade liberalisation, tariff liberalisation, compliance assurance under CEPA, it will be better for us.
Not just tariff adjustment or tariff reduction through CEPA, we also need to focus on how we can boost our investment in India's north-eastern region and attract Indian investors to our special economic zones.
Particularly, it will be good for us if we can bring in Indian investment in our economic zones and target the Indian market, cashing in on the advantage of zero tariffs.
India has competitive advantages over us in the fields of services, IT and software. If we can enhance our collaboration with it in those areas, our services exports to the country will go up.
If we can reach Indian standards through our mutual initiative and with the help of South Asian Regional Standards Organisation, we will be able to sign a mutual recognition agreement with neighbouring India to address the existing issues, such as anti-dumping and countervailing duties.
Our trade with India is mainly done through landports. So, we can maximise gains from CEPA by building an integrated customs system as well as an interoperability of the system and a single window at landports.
Prof Mustafizur Rahman is a Distinguished Fellow, CPD
