Positive & Negative Impact of Safta on Bangladesh

1849 Words8 Pages
6. 0. Positive Impact of SAFTA in Bangladesh

I. Increases Bangladesh’s Trade Volumes with SAARC
The volumes of imports from SAARC countries as well as the exports of Bangladesh to
SAARC countries from fiscal year 1997/98 until fiscal year 2007/08 is provided in following (Table-1) and graphically illustrated in Figure 1. Clearly, as part of the overall increase in trade volumes, Bangladesh’s exports to SAARC countries have grown moderately and Bangladesh’s imports from SAARC countries have increased significantly, both in nominal terms.
Table: 1-Bangladesh's Exports & Imports with SAARC Countries & Rest of the World
(In million of US$, unless otherwise indicated)

The first important observation is that SAARC plays a
…show more content…
The British provided different privileges to some specific groups in South Asia that enforced the ethnic and religious division among the sub-continental people. Another reason that may in some cases be related to the previous one is that India, Pakistan and Bangladesh had fought wars thrice in past fifty years. A possible third reason may be the way India is currently projecting its superiority complexity at the negotiation table of any topic. Whatever the reasons may be, the current lack of trust will need to be overcome if we want to make SAFTA more effective.

III. Lack of Land Connectivity
Though two of the SAARC countries are isolated by sea from the other member states but there is no land connectivity among the rest as well. Infrastructure is an essential tool to get engaged into the flow of globalization. Land connectivity makes transporting commodities easier, quicker and economy in cost. But unfortunately after twenty years of SAARC’s establishment it did not able to make the region connective in land. But all sorts of connectivity e.g. land, air and sea is essential to make efficient business transaction among the nations. So a SAARC high way as well as free air and sea connectivity should be ensured to make SAFTA effective.

IV. Transit Crisis rises
It is a serious matter that SAARC countries are still not giving sufficient transit to each other. For example India is giving two hours transit to Bangladesh & Nepal through Bangla Banda
Get Access