REGIONAL TRADE LIBERALISATION AND NON-TARIFF BARRIERS: THE CASE OF BANGLADESH’S TRADE WITH SOUTH ASIA

This article examines the persistent challenge of non-tariff barriers (NTBs) in the context of regional trade liberalization in South Asia, using Bangladesh's trade as a case study. It argues that while tariff liberalization has progressed under the South Asian Free Trade Area (SAFTA), the benefits for countries like Bangladesh have been severely constrained by the continued and widespread use of NTBs by its trading partners, particularly India. The study identifies and analyzes the various types of NTBs that Bangladeshi exporters face, such as cumbersome customs procedures, arbitrary product standards, and restrictive sanitary and phytosanitary (SPS) measures. The research provides empirical evidence of the significant costs and delays imposed by these barriers. The paper concludes that for regional trade liberalization to be meaningful, a concerted and time-bound effort to identify, harmonize, and eliminate NTBs is an absolute necessity.

Despite the formal commitments to trade liberalization under the South Asian Free Trade Area (SAFTA), intra-regional trade remains stubbornly low. This paper argues that the primary culprit is not tariffs, but a dense and opaque web of non-tariff barriers (NTBs). Using the case of Bangladesh's trade with its South Asian neighbors, particularly India, this study provides an in-depth analysis of the problem. The research begins by creating a typology of the different NTBs that Bangladeshi exporters frequently encounter at the land borders. This includes a detailed examination of procedural barriers, such as complex documentation requirements and a lack of transparency in customs valuation, which lead to significant delays and unofficial payments. The paper also delves into the technical barriers to trade, analyzing how the arbitrary application of product standards and testing requirements can be used as a disguised form of protectionism. The core of the article is an assessment of the economic impact of these barriers. It argues that the high compliance costs associated with NTBs effectively nullify the benefits of the tariff concessions granted under SAFTA, particularly for the small and medium-sized enterprises that form the backbone of Bangladesh's non-RMG export sector. The findings lead to a strong policy conclusion: the future of trade cooperation in South Asia depends on shifting the focus of negotiations from tariffs to the much more complex and politically sensitive task of tackling NTBs. The paper calls for the creation of a robust regional mechanism for the notification, review, and eventual elimination of these barriers.