ISSUES IN TRADE COOPERATION IN SOUTH ASIA: A BANGLADESH PERSPECTIVE

This article examines the critical issues and challenges surrounding trade cooperation in South Asia from the perspective of Bangladesh. It analyzes the context of the SAARC Preferential Trading Arrangement (SAPTA) and assesses its potential benefits and drawbacks for a least developed country like Bangladesh. The study identifies the key structural impediments to greater regional trade, including the high concentration of similar products, significant non-tariff barriers, inadequate transport and transit infrastructure, and the large-scale informal trade that undermines formal economic integration. The research particularly focuses on the massive trade imbalance between Bangladesh and India and explores the policy options for addressing it. The paper argues that for trade cooperation to be mutually beneficial, it must include special and differential treatment for the smaller and least developed economies of the region. The analysis concludes with a set of policy recommendations for Bangladesh to effectively navigate the complexities of regional trade negotiations.

While the formation of the SAARC Preferential Trading Arrangement (SAPTA) marked a formal commitment to regional economic cooperation, its successful implementation faced a host of formidable challenges. This paper provides a detailed analysis of these issues from the specific perspective of Bangladesh. The study begins by outlining the basic structure of the South Asian economies, highlighting their competitive, rather than complementary, nature, which inherently limits the potential for intra-regional trade. The core of the article is an in-depth examination of the specific challenges faced by Bangladesh. A primary focus is the issue of the large and persistent trade deficit with India, which raises significant concerns about the potential for trade liberalization to lead to de-industrialization in Bangladesh. The paper also provides a detailed analysis of the non-tariff barriers (NTBs), such as cumbersome customs procedures and restrictive standards, which are often more significant obstacles to trade than tariffs. The problem of inadequate transit and transport logistics, which dramatically increases the cost of intra-regional trade, is also explored. The findings lead to a clear policy stance: Bangladesh should advocate for a model of regional cooperation that is asymmetric and development-oriented. This includes demanding non-reciprocal market access, the removal of NTBs, and significant investment in regional infrastructure to ensure that trade liberalization leads to equitable benefits for all member states, not just the largest economy.