Indian delegates at economic policy discussions here called for Bangladeshi goods to be given "unrestricted access" to the Indian market.

Former Indian foreign secretary Muchkund Dubey also said New Delhi should offer "zero tariff access" to goods from Bangladesh and other neighbors.

"I think India should have really come forward and offered zero tariff access to its neighbors, including Bangladesh, and should also support the least developed countries' (LDCs') demand for zero tariff access of their products to the developed world," he said in his keynote speech at a discussion organized by the Metropolitan Chamber of Commerce and Industry (MCCI).

At another discussion, eminent personalities from both India and Bangladesh said goods from this country should be given "unrestricted access" to the Indian market. Concrete steps should be taken to boost mutually beneficial bilateral economic cooperation and reduce Bangladesh's huge trade deficit with India, they said.

On the problems and advantages Bangladesh may face after 2004, the terminal year for phasing out quota restrictions on textile products, Dubey, also India's former permanent representative to the World Trade Organization (WTO), said this country would still be more competitive than many of its competitors, including India. "I think Bangladesh would be able to yield twice as much benefit than any other country in a quota-free world," said the retired diplomat, who was also his country's envoy to Dhaka.

Dubey, however, said Bangladesh has to make structural adjustments by phasing out old textile units and modernizing the sector.

Giving a brief history of trade negotiations under the General Agreement on Tariffs and Trade (GATT) and the WTO, he said in the last 20-30 years duty on goods has been reduced mostly in the interest of rich nations. He said the time has now come for LDCs (least developed countries) and developing countries to make their point for drastically bringing down export subsidies provided by the developed countries.

The discussion on "Bangladesh-India Economic Relations" identified a number of problems in boosting bilateral trade. The discussion was organized jointly by the Center for Policy Dialogue (CPD) and the Center for Policy Research of New Delhi.

Briefing reporters on conclusion of the two-day discussion, CPD chairman Rehman Sobhan said trade with India comprises a very important component of Bangladesh's global trade relations. "Neighboring countries tend to trade more. This is global phenomenon. But what is of utmost concern here is the growing trade deficit which has grown to almost 10 times over the decades and Bangladesh's inability to enter into the huge market of its neighbor," he said.

Sobhan said sharing of waters of common rivers was the second most important issue discussed at the dialogue. The participants noted that under the Ganges Water Sharing Treaty, Bangladesh had got its share in the past three years. There should be long-term agreements on sharing waters of other common rivers and Nepal and Bhutan should be included to harness and utilize water resources in the region, they said.

Indo-Bangla political and security issues were also discussed. "We discussed settlement of land, river and maritime boundaries. It is good news that out of the 4,000 km common border, only six km is yet to be demarcated," Sobhan said.

George Verghese, a research professor at CPD, said, "During our discussion we made efforts to create wide constituencies so that these ideas don't die. The discussions were extremely helpful and spirit among us was very high."

Others present at the briefing were Arjun Sengupta of the Jawaharlal Nehru University and former member of India's Planning Commission, Dubey, Somnath Chatterjee, a lawmaker and chairman of the West Bengal Industrial Development Corporation, and N. N. Jha, chairman of the foreign policy cell of the Bharatiya Janata Party (BJP) and a former high commissioner to Bangladesh.

India Abroad News Service