Seven Asian nations discuss economic cooperation

Seven Asian nations discuss economic cooperation

Parven Ahmed, Assciated Press, Dhaka, Bangladesh

A free trade agreement between seven South and Southeast Asian nations could be in place by July 2006, a top Bangladeshi diplomat said on Wednesday after a meeting of a regional economic forum.

The trade group, known as BIMSTEC, was launched by Bangladesh, Bhutan, India, Nepal, Myanmar, Sri Lanka and Thailand in 1997.

A framework agreement for a regional free trade zone was signed in February and ongoing negotiations are likely to be completed by December, Bangladesh's top foreign ministry official, Hemayetuddin, told reporters in the Bangladesh capital, Dhaka.

"We feel that it will come into effect on schedule" in July 2006, said Hemayetuddin, who uses one name. "The agreement will take into account the needs of the developing countries."

BIMSTEC stands for the Bay of Bengal Initiative for Multi- Sectoral Technical and Economic Cooperation.

Officials also agreed to look into ways to simplify travel and visa rules for business people, Hemayetuddin said.

The FTA - involving trade in goods and services, as well as investment - is likely to boost economic growth and strengthen the global bargaining power of the southern Asian region that is home to nearly 1.3 billion people, or nearly one-fifth of the world's population.

"Our goal is to achieve better economic performance and enhance our competitive edge in the world market," Bangladesh's Foreign Minister M. Morshed Khan said on opening the meeting.

Delegates also called for cross-cultural exchanges and closer cooperation in areas such as counterterrorism, tourism, technology and transportation, as well as in combatting trans- border crimes such as drug smuggling.

The officials also discussed exchanging weather information and helping each other manage natural disasters, Hemayetuddin said.

Three BIMSTEC members - Thailand, Sri Lanka and India - were hardest hit by December's devastating tsunamis that struck 11 countries in the region. Two others - Myanmar and Bangladesh - suffered only minor damage.

Meanwhile, Bangladesh, the group's current chair, plans to host a ministerial meeting on poverty alleviation in 2006, he said.