Enhancing trade relations with Malaysia

NEWS reports disclosed that the planned Free Trade Agreement (FTA) deal between Bangladesh and Malaysia may face tougher deadlock with both the countries still remaining firm on opposing stands on two contentious trade related issues which have already stalled the process for nearly five years.
Reportedly, Dhaka opted for inclusion of the services sector in the proposed Free Trade Agreement to use the benefits of manpower export to the booming economy of Malaysia but Malaysia opted for the FTA to cover only trade in goods. That is Kuala Lumpur is strongly against inclusion of the services sector in the deal.
The reports further added that Dhaka sought protection to offset the huge revenue loss to be caused for tariff reduction under the duty-free regime of the FTA. Besides, Bangladesh reconfirmed is earlier position on inclusion of the services sector in the proposed FTA with Malaysia as Bangladesh has more potential to export manpower than to enter into the competitive market of Malaysia with its small basket of exportable goods. Mentionable, Bangladesh imports huge volume of edible oil, crude palm products and IT items from Malaysia. Data revealed that the trade gap between the two countries stood nearly at US$ 2 billion in favour of Malaysia and it is on increasing trend always. The total bilateral trade was worth US$ 2.21 billion in 2013-14 fiscal year.
Officials at the Commerce Ministry confirmed the move to strike a bilateral FTA between the two countries first began in mid-2010 when Malaysia did not strongly oppose the demand for inclusion of the services sector at the initial stage. After more than one year, Kuala Lumpur raised the issue and expressed their strong opposition on broadening the scope for the proposed FTA with the inclusion of the services area. This deal has already taken a long time to be struck, making it harder for Bangladesh to send its excess manpower, mostly non-skilled or semi-skilled, to the Malaysian job market.
It is an agreed fact that Malaysia has by now become one of our valued foreign business partners – both exports and imports — and foreign investor on bilateral basis. Moreover, the volume of home bound foreign exchange remittance from Malaysia is quite considerable. Therefore, we suggest that the authorities concerned here should pursue a strong economic diplomatic offensive to remove all tariff, para-tariff and non-tariff barriers and workout mutually acceptable and gainful trade deal that will further economic, more so trade prospective, interests of both the sides. It must not be forgotten that Malaysia is now an Asian role-model for economic development.