They suggested that local businessmen should realise that a big opportunity has already been created for a booming trade in the south Asian region after signing the South Asia Free Trade Area (Safta) agreement. This opportunity will also help reduce trade gap among the member-countries of the regional forum.

Intra-Saarc trade experiences reveal that Bangladesh has always been on top of the list of importing countries among the Saarc member-countries. According to the Export Promotion Bureau, in the 2004-05 fiscal, Bangladesh imported goods worth $2.190 billion from other countries of the bloc, while it exported goods worth $223.9 million only.

Safta will bring benefits for Bangladesh to reduce the trade gap, the experts said, adding that local exporters should realise first the advantages of the deal.

"Bangladesh will not get trade benefits from all countries under Safta. But as per the deal, it can get some export benefits from India, Bhutan, Sri Lanka and the Maldives," they said taking into account the all member- countries' sensitive lists.

"Local entrepreneurs have to identify the goods beyond the sensitive lists of the Saarc member-countries. Because under Safta, every country can get trade advantages through trading with each other," said an official of the commerce ministry.

He said Bangladeshi traders are habituated at exporting to EU and US markets, which is not safe for a country in terms of maintaining export volume in a free market economy.

"As Safta has given more or less benefits to Bangladesh, it is very important for Bangladeshi entrepreneurs to take the advantages because of proximity," he said.

Possible benefits Bangladesh may get

Bangladesh can be a beneficiary of the seven-nation deal, the experts said, through export of fish, vegetables, jute, tea, leather, readymade garments, home textiles, medicines, processed food, consumer goods, cosmetics, handicrafts and ceramics to other Saarc countries.

The country will get market access to India for jute and jute goods, leather and leather products, ceramics and fruit juice under free trade.

As per the Indian Safta sensitive lists, Bangladesh can export all types of HS heading products like fertilisers, raw hides, skin, leather, special woven fabrics, vegetables, some textile articles, headgear and parts.

On the other hand, India has committed to provide market access of 8 million pieces of garments to Bangladesh under Tariff Rate Quota (TRQ), which can expand garments market in India.

Commerce Ministry sources said although India included Hilsha fish in their sensitive list as per the Sapta (Saarc preferential trading arrangement), it is yet to gain a duty-free access to the Indian market.

Bangladesh has huge trade gap with India. Under the free trade deal, it can be the biggest trading partner of India to reduce the trade gap.

Quoting an example, a high official of the commerce ministry said India's trade with Saarc countries during the April-August period of FY 2005-06 reached $2.29 billion, registering a 19 percent growth compared to the same period the previous year. India's exports to Pakistan have gone up by 10 percent while exports to India from Pakistan have registered 80 percent growth during this period.

"So why not Bangladesh should get the advantages from India," he questioned, suggesting a two-way effort to overcome the present negative mindset of the policy makers in the interest of reaping reciprocal benefits.

In the Safta sensitive list, Pakistan includes potential export items of Bangladesh such as jute, fabrics, woven and knitted garments, special woven fabrics, made-up textiles and footwear.

EPB said Bangladesh exported goods worth $46.17 million to Pakistan in the July-March period of FY 2005-06, which is 0.61 percent of the total export earnings of the country. The main products that Bangladesh usually exports to Pakistan are raw jute and tea.

Sri Lanka sensitive list includes fish, leather and footwear, while all major export items of Bangladesh except tea are excluded from the sensitive list of Bhutan. So, Bangladesh will get a chance to boost its export to these countries.

Meanwhile, major export items of Bangladesh such as fish, jute fabrics, woven and knitted garments, made-up textiles and footwear are on the sensitive list of Nepal. Only three major items of Bangladesh are on the sensitive list of the Maldives.

Data of the country's promotional agency for export show that the main export items of Bangladesh to the Saarc region are chemical fertilisers, raw jute, frozen fish, leather goods, tea, ceramic, garment and textile products.

Experts said the trade liberalisation process under Safta mostly depends on Indian interest, because Saarc regional import is dominated mostly by exports from India, which accounts for 84 percent of its regional trade.

"While the region absorbs 5 percent of India's total exports, only 1 percent of India's imports come from the region. So as a big market player India should look forward to liberalising its market under Safta accord," an expert of the commerce ministry opined.

He said with non-tariff and para-tariff barriers, the recent India-Pakistan trade dispute under Safta may hamper the smooth implementation of Safta.

Meanwhile, on the eve of the Safta implementation, India alleged that Pakistan restricted list of 773 Indian items despite its ratification of the accord without any reservation.

To settle the dispute, an emergency meeting of the foreign ministers of Saarc countries will be held in Dhaka on August 1-2.

"If the India-Pakistan dispute is not resolved, Safta implementation may fall in trouble," the official said.