specially focus on SAARC,SAPTA,SAFTA,IORA

1. MAHEDI HASAN JOY
DPET. OF FINANCE
UNIVERSITY OF DHAKA
mahedicox96@gmail.com,www.SixSigmabd .com

2. TRADE AGREEMENT
• A trade agreement (also known as trade pact) is a wide ranging tax, tariff and trade
treaty that often includes investment guarantees

3. THE ADVANTAGES OF TRADE AGREEMENTS
Increased
Production
Economic
Development
International
Cooperation
Resource
Allocation
Business
Incentives

4. THE DISADVANTAGES OF TRADE AGREEMENTS
Labor
Practices
Environmental
Destruction
Loss of
Domestic
Industry
The "Noodle
Bowl"

5. PRINCIPLES OF TRADE AGREEMENTS
• Non-discrimination
• More open
• Predictable and transparent
• More competitive
• More beneficial for less developed countries
• Protect the environment

6. TRADE AGREEMENTS OF BANGLADESH
SAARC
Country GDP ( Nominal)
Bangladesh $205.3 bn
Pakistan $250 bn
Sri Lanka $80.4 bn
Nepal $21.6 bn
India $2308.0 bn
Bhutan $2.2 bn
Afghanistan $21.3 bn
Maldives $3.0 bn
Exports 2014
$31.2 bn
$25.1 bn
$11.8 bn
$1.0 bn
$464.0 bn
$0.7 bn
$0.3 bn
$0.28 bn
Foreign Direct Investment
$0.66 bn
$0.709 bn
$0.9 bn
$10 mln
$31.0 bn
$63 mln
N/A
N/A

7. SAARC
Objectives of SAARC
Principles of SAARC
Structure of SAARC

8. SEVERAL SAARC AGREEMENTS
BENEFICIAL FOR BANGLADESH
Agreement on trade in service
SAARC energy agreement
Agreement for establishing SAARC arbitration council
Agreement on establishment of SAARC food bank
SAARC motor vehicle agreement
 Achievement from SAARC

9. SAFTAA
• Free Trade Agreement confined to goods
SAPTA
• The member countries came into effect in 1995.

10. LIMITATION OF SAARC FOR BANGLADESH
Domination of India
Political differences
Inequality among members
No progress in road and rail connectivity
Most of the countries are poor

11. STEPS SHOULD BE TAKEN TO MAKE SAARC
MORE EFFECTIVE
Accelerate the Implementation of All Agreements
Ease The Tariff Barriers
Accelerating the reduction of sensative list
Mobilizing needed funds for building trade facilitation
Involve Private Sector Representatives in the Negotiations
Easing visa procedure
Form a SAARC Task Force

12. SAPTA--SAARC PREFERENTIAL
TRADING ARRANGEMENT
History
The basic principles & objectives underlying SAPTA
Components
Negotiations
Committee of Participants
Balance-of-Payments Measures
Framework of SAPTA

13. SAFTA
From SAPTA to SAFTA
Objectives and Principles
Core Elements of SAFTA
Implication of SAFTA for Bangladesh
Trade Restrictions under SAFTA

14. 24
3
16.6
12.8
23.9
3
14.2
12.8
BANGLADESH BHUTAN INDIA MALDIVES
SL OF SAFTA COUNTRIES
Coverage of SL as % of total HS Lines of Non-LDCs
Coverage of SL as % of total HS Lines of LDCs

15. 65
38.4
74.5
64
22
56.5
57.6
46.4
BANGLADESH INDIA MALDIVES NEPAL
Value of imports from SAARC subject to SL (%) Value of exports from SAARC subject to SL(%

16. STEPS SHOULD BE TAKEN TO MAKE SAFTA
MORE EFFECTIVE
Accelerate the Implementation of All SAFTA Agreements
Eliminate Tariffs, Para-Tariffs and Non-Tariff Barriers
Shorten Negative Lists
Involve Private Sector Representatives in the Negotiations
Form a SAARC Task Force
Tackle Common Economic and Political Challenges
Establish Regional Fund to Promote Poverty Reduction

17. IORA
Formation
Country Members
Australia, Bangladesh,
Comoros, India, Indonesia,
Seychelles, Iran, Kenya,
Madagascar, Malaysia,
Mauritius, Mozambique,
Oman, Singapore, South
Africa, Sri Lanka, Tanzania,
Thailand, UAE and Yemen

18. OBJECTIVES
To promote the sustained growth
To focus on those areas of economic co-operation
To explore all possibilities and avenues for trade liberalization
To encourage close interaction of trade and industry
To strengthen co-operation and dialogue among Member

19. IMPLICATION OF IORA
Blue Economy and Bangladesh
Potentialities of Blue Economy in Bangladesh
Food security
Fisheries
Marine and coastal tourism
Harvesting power
generation
Harvesting power
generation
Shipping and port facilities

20. Challenges ahead of bangladesh in blue
economy
• Maintaining the security over the economic area
• Establishing marine friendly infrastructure for marine tourist
• Protecting the area from the international smugglers and fish pirates
• Maintaining investment friendly environment in the awarded area

21. BANGLADESH’S TRADE VOLUMES WITH
SAARC

22. BANGLADESH’S SAARC TRADE AS A SHARE
OF BANGLADESH’S TOTAL TRADE

23. INTRA IORA TRADE OF BANGLADESH :
2005 VS 2010
0
5000
10000
15000
20000
25000
30000
2005 2010
Exports to World Exports to IORA Imports from World Imports from IORA