On Sunday, the Commerce Minister of Bangladesh, Tipu Munshi, and Bhutan’s Economic Affairs Minister, Lyonpo Loknath Sharma, signed a Preferential Trade Agreement (PTA) to bolster economic ties between the two countries. The discussion was also virtually attended by Bangladeshi Prime Minister Sheikh Hasina and her Bhutanese counterpart Lotay Tshering. During the meet, both Hasina and Tshering recognised the two countries’ friendship as one of “high importance.” Hasina said, “The agreement, which both sides signed today, will contribute to further consolidating the relations between the two countries … Under this agreement, a range of products from Bangladesh [100] and Bhutan [34] can find duty-free entry into each other’s markets.”
The deal was signed on 6th December, which was also the day being celebrated as the 50th anniversary of the two sides’ diplomatic ties. On the same day in 1971, Bhutan became the first country to recognise Bangladesh as a sovereign nation by recognising its independence from Pakistan. Since then, the ties between the two sides have only strengthened. In 2018-2019, the trade between the two countries rose from $12.7 million in 2008-2009 to $49.65 million. Hence, this agreement is an important step forward in the two sides’ already flourishing economic partnership. In fact, this PTA is the first such agreement signed by Bangladesh since its independence in 1971.
This comes at a crucial time for Bangladesh, as it looks to get promoted from its status of a least developed country by 2024. Hence, it will no longer enjoy the benefits of preferential tariffs for its exports, which have been granted to it in accordance with the World Trade Organisation norms after it acquired the status of a lower middle-income country in 2015. Hence, such PTAs and Free Trade Agreements (FTA) are crucial for it to expand its exports over the next few years. Bangladesh has until 2027, that is till the end of the “grace period” following its graduation from the status of a least developed country, to achieve such agreements with its allies. According to the Bangladeshi Commerce Ministry, the government is already negotiating PTAs with 44 countries and FTAs with 11.
Meanwhile, in a similar attempt to bolster relations with another one of its neighbours, Hasina hosted Pakistani High Commissioner Imran Ahmed Siddiqui at her residence on Thursday. While reiterating that Bangladesh could never forget the “atrocities” committed by Pakistan during the independence war in 1971, she said that she would still remain optimistic about the two sides bolstering regional cooperation and strengthening their diplomatic partnership. Hasina and Siddiqui also discussed reviving bilateral and regional consultation mechanisms.
Bangladesh and Pakistan have never really had strong diplomatic relations. Their partnership hit an all-time low after the Hasina-led government initiated investigations into war crimes committed during the 1971 war. Consequently, several leaders of the Jamaat-e-Islami party were executed on these charges. Pakistan condemned this decision and called it a “politically motivated” move. However, since the passage of the Citizenship (Amendment) Act by the Indian government, Bangladesh’s friendship with India has soured, pushing it closer to Pakistan, India’s age-old rival.
Bangladesh Looks to Bolster Ties With Bhutan, Mend Relations With Pakistan
On Sunday, Bangladesh finalised a preferential trade agreement with Bhutan. In the same week, Bangladesh’s Prime Minister Sheikh Hasina hosted the Pakistani High Commissioner.
December 7, 2020
SOURCE: UNITED NEWS OF BANGLADESH