A policy advocacy group in Bangladesh was formed last month to deal with Non-Tariff Measures (NTMs) and other regional trade facilitation issues for promoting commerce in South Asia. Currently, intra-regional trade in South Asia is a minuscule 5.0 per cent of its trade with rest of the world. In 2014, intra-regional trade among the SAARC member countries stood at around $50 billion. The advocacy group was formed as per the policy advocacy strategy of SAARC Trade Promotion Network (SAARC TPN). The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) formed the group, which comprises business leaders, government officials, trade experts and analysts. Mahbubul Alam, vice- president of the FBBCI, also vice president of SAARC Chamber, became the convener of the 16-member advocacy group. According to the terms of reference, the group will deal with trade facilitation and trade promotion issues focusing NTMs and NTBs (Non-Tariff Barriers). NTMs are generally official policy measures on export and import other than ordinary customs tariffs, which have potential effect on international trade in goods. It includes a wide range of measures, including technical regulations, standards, customs procedures and others. A recent survey, conducted by the International Trade Centre (ITC), identified that SAARC region shared only two per cent of Bangladesh’s exports, but 10 per cent of total NTMs faced by the exporters. The policy advocacy group will also address the NTBs in South Asian countries, where Bangladeshi exports face such obstacles. NTBs are generally some of the NTMs when “improperly” applied to restrict or discourage exports or imports. Complex rules of origin, product specific quotas, import prohibition and licencing, frequent changes in standards are some of the NTBs. Currently, all SAARC countries maintain import prohibition and restrictions on religious, health and social safety grounds. The group will also address the NTMs and NTBs in Bangladesh, which importers from other SAARC countries encounter. A study, conducted by the United Nations Conference on Trade and Development (UNCTAD) in 2013, mentioned that in Asia, Bangladesh, the Syrian Arab Republic and the Philippines, utilise NTMs much more than Cambodia or Indonesia. The ITC survey findings, which will be released soon, pointed out that about 14 per cent of the difficult regulations faced by exporters were applied by Bangladesh on its exports. For instance, Bangladesh Customs takes longer time for verification of documents, with sometimes clearing and forwarding (C&F) agents asking for additional payments.
