RANGOON PLANS TRADE EXPANSION ( Kao-Wao ) March 6, 2003

Kao Wao Newsletter

RANGOON PLANS TRADE EXPANSION

(Cited from Kaladan News, March 6, 2003)

The Bangladesh and Burma governments will set up a joint trade commission during PM Khaleda Zia’s visit to Rangoon on March 19th. A foreign ministerial joint commission will also be set up to oversee bilateral relations, according to the Daily Star report.

The two neighbours will discuss ways to introduce accounts trade and coastal shipping links to boost trade, the foreign ministry sources said. The two neighbours, Burma and Bangladesh will change the existing border trade agreement signed in 1994 to prohibit trading of third-country products, Commerce ministry sources said. Manufactured goods will require at least 30 >per cent value addition to be traded.

The account trade arrangement would initiate two-way transactions of goods without the need for cash payment, the Daily Star reported. The proposed joint trade commissions to be headed by the commerce ministers of the two countries will be regularly reviewed and identify products for exchanges. The commission will also identify and resolve trade problems, the newspaper said. Under the coastal shipping deal, Chittagong, Cox’s Bazar and Teknaf will be linked to the Burma ports of Rangoon, Akyab and Maungdaw, the newspaper reported. In 2000-2001, the trade volume between two countries left a trade gap of $ 23.33 million against Bangladesh. But 2001-2002, the trade volume came dawn to around $19 million with the trade imbalance still against Bangladesh $4.5 million, official sources said.

It was not known whether any agreement on the repatriation of the Rohingya refugees would be signed. Burma assured that the refugees would be taken >back after identity verification, Foreign office sources said.