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SABF trade can touch $9 bn in 3 yrs: Lodha
E-Tex Staff - New Delhi

Trade among India, Bangladesh, Nepal and Bhutan can be doubled to US$ 9 billion over the next three years, the FICCI president, Mr R S Lodha has said.

Addressing the press at the end of the two-day meeting of the South Asia Business Forum (SABF) here recently, Mr Lodha said, “There is a huge potential to double trade from the present volume of US$ 2.5 billion officially and US$ 3 billion unofficially within the next three years amongst these four countries.”

There has been a general acceptance that lack of political will to achieve a higher level of regional cooperation has constrained economic potential of the region and it is in this context that SABF will make concerted efforts to facilitate growth, he said.

Outlining a seven-point agenda for enhancing trade and investment flows, he said the forum is committed to work towards a South Asia Sub-Regional Economic Cooperation free-trade zone and harmonisation of custom procedures and documentation in the proposed free-trade region.

He said the forum also supports uniform banking and insurance practices based on international standards to take care of exporters’ needs and regional agreement for commercial arbitration as well as quality standards. To improve physical infrastructure, there is a need to develop extensive road network, bilateral or regional agreement on development of extensive railway linkages and fast-track clearance on land borders between these countries on customs, immigration and warehousing areas, he said.

Mr Lodha pointed out that lack of unity amongst the nations in the sub-region has weakened India’s stand at the WTO negotiations. “Coordination at the WTO is possible on account of common areas of concern particularly in areas of farm exports,” he said. A special session to review trade and investment policies in the sub-region emphasised critical issues that are imperative to enhance regional cooperation, he said, adding it is unanimously agreed that harmonisation of customs documentation and procedures needs topmost priority. “Uniform banking facilities to enable issuance of letters of credit as well as trade facilitation are urgent. Uniform guidelines on investment, promotion and protection need to be worked out to enable national treatment in host countries applicable under the WTO,” he said.