Bangladesh could accelerate its growth exponentially only if the country taps into its potential to double the trade with South Asian countries, says a World Bank study.

The report ‘A Glass Half Full: The Promise of Regional Trade in South Asia’ was launched on Wednesday (Sept 19) in Dhaka.

The report cited tariffs and para-tariffs, real and perceived non¬tariff barriers, connectivity costs and a broader deficit of credibility as major obstacles in hindering regional trade.

The report found that Bangladesh’s trade with South Asia is a meager nine percent of its global trade and interregional trade in South Asia has reached an all-time low.
This goes on to show that countries are yet to reap the benefits of the South Asia Free Trade Area (SAFTA) agreement, which allows free trade between the eight SAARC countries with the exception of sensitive goods not listed under SAFTA’s tariff liberalization.

However, nearly 46 percent of Bangladesh’s imports fall under the sensitive list which slows down the country’s trade sector.

Finance Minister AMA Muhith told the launching ceremony that efforts are being made to reduce the import of sensitive goods from India.

“We are trying our best to increase connectivity with India,” he added.

World Bank Chief Economist in South Asia Sanjay Kathuria said, “South Asia can triple its trade to 67 million dollars by increasing interregional trade and fostering better border policies.”