Review of bilateral investment treaty with US in order

Although the bilateral investment treaty agrees to consult for dispute settlement, interpretation or application of this treaty, etc, it does not include any provision for amendment. It has been about 24 years since this treaty was signed and no amendment has been made so far, writes Meer Ahsan Habib

 AN INTERNATIONAL oil company engaged in oil and gas exploration has blown out an entire gas field; excluding the ecological loss, the monetary value of the loss is around Tk 1,700 crore. The company is unwilling to make any compensation both in terms of resource value and ecological disaster. Under the armour of a bilateral investment treaty between the two countries, which has a provision to make any transfer freely and without delay into and out of the country, this oil company sold its possessions to another IOC and transferred the transacted amount without any resistance from the government. This is how a company made its way out.
   Readers might remember that Bangladesh suffered a major gas blow-out in 1997 for which Occidental, the fourth largest oil and gas company in the United States, was responsible. It was alleged that Occidental did not adopt proper preventive and precautionary measures to avoid such accidents. The compensation of the damage is yet to be realised in full. Besides, Occidental ended its operation in Bangladesh even before settling down the compensation issue with the Bangladesh government, leaving the issue to be dealt with Unocal that took over its interest. The latter was merged with Chevron Corporation in 2005. The bilateral invest treaty known as ‘Reciprocal Encouragement and Protection of Investment’ might have played a critical role to serve the Occidental’s interest by letting it go without settling down the compensation issue (Article V-1 which states ‘… all transfers related to an investment in its territory of a national or company of the other Party to be made freely and without delay into and out of its territory’). Back in December 1981, Clayco Petroleum Corporation filed an antitrust suit with the US district court against Occidental Petroleum Corporation that Occidental allegedly made secret payments to an official of Umm Al Qaywayn (one of the emirates in the United Arab Emirates) to obtain an off-shore oil concession. The district court, however, dismissed the action on the basis of the act of state doctrine. Needless to mention that US has a Foreign Corrupt Practices Act in place to restrain US companies concerning bribery of foreign officials.
   There has been a lot of debate on whether Bangladesh should move ahead with Trade and Investment Framework Agreement or not. However, little is known about the bilateral investment treaty that was signed between Bangladesh and the US back in 1986 during the despotic Ershad regime. It is said the first draft of TIFA acknowledged the treaty signed in March 1986. This BIT was first introduced by the US in 1981 which is dedicated towards encouragement and protection of US investment in developing countries. The US has so far concluded 40 such treaties. Among other South Asian countries, Sri Lanka is the second after Bangladesh who has concluded such treaty and a TIFA as well.
   The bilateral investment treaty is an ‘integral part of US efforts to encourage other governments to adopt macroeconomic and structural policies that will promote economic growth.’ A specific tenet in this treaty is that US direct investment abroad and foreign investment in the US should receive fair, equitable and non-discriminatory treatment. It also emphasises that international direct investment flows should be determined by private market force. Other major characteristics of the treaty are that international standard laws shall be applied in case of any expropriation and payment of compensation, free transfer of funds associated with an investment both in and out of the host country and third party arbitration for dispute settlement.
   Like every investment treaties, the US attached a line on intellectual property right in article I(c) (iv) of this treaty which recognises ‘Intellectual property, including rights with respect copyrights and related patents, trade marks and trade names, industrial designs, trade secrets and know-how, and goodwill’ by the other party and its political subdivisions. The US and the corporate giants have always used IPR as a political and economic weapon. Bangladesh being a least developed country is enjoying the flexibility in implementing IPR till January 2016. Full implementation of IPR will only strengthen corporate monopoly.
   From a developing country perspective, existence of performance requirements such as export obligation to a minimum percentage, procurement of local products and services and employing local labour, use of most recent technology, etc add values to the foreign investment. The bilateral investment treaty under article II-6 includes a provision that ‘…each Party shall seek to avoid the imposition of performance requirements on the investments…’ which in a different way implies that ‘performance requirement’ cannot be imposed.
   According to article III (E), ‘Compensation shall be equivalent to the fair market value of the investment. The calculation of such compensation shall not reflect any reduction.’ Undoubtedly, when Bangladesh and other developing countries are at the receiving end, relative bargaining strength becomes determining factor in such agreements. Expropriation has been a thorny issue. Developing countries have traditionally been agreed that compensation be made for any kind of expropriation by the state that is done for a public purpose. But in cases of any environmental damage caused by a firm and under such condition when the firm is unwilling or incapable to compensate damages, expropriation should be made without compensating the investing company.
   In case of any dispute that is not solved through consultation and negotiation, the bilateral investment treaty under article VII-2 has provisions of settling down any such investment dispute under the rules of ‘additional facility’ of the International Centre for the Settlement of Investment Disputes. Apparently, this sounds to be a favourable term, but a developing country like Bangladesh should seek avenue to settle such disputes under the United Nations Commission on International Trade Law than the multilateral international financial institution influenced ICSID. Bangladesh presently not being a member of UNICTRAL does not enjoy the privilege of settling an investment dispute under its shadow.
   Although the bilateral investment treaty agrees to consult for dispute settlement, interpretation or application of this treaty, etc, it does not include any provision for amendment. It has been about 24 years since this treaty was signed and no amendment has been made so far. It is high time that the government should take an in-depth look into this aspect of this treaty and come up with necessary modification proposal.
   Comparing FDI Acts of Bangladesh and India one can find that Bangladesh has put almost no protectionist measures in her Foreign Private Investment (Promotion and Protection) Act 1980, while India has a number of such measures, e.g. she has listed 30 projects which will have to obtain environment clearance certificate under the Environment Protection Act 1986. As we can that even after having such restrictions, India secured a robust growth in FDI while Bangladesh is witnessing a decreasing trend despite having vast flexibilities. So it is not the investment treaty that attracts FDI, it is the competitive advantages that we do not have. An appreciable move by the government is the initiation of the Bangladesh Competition Council which will aim at promoting fair competition among business and service providers and prevention of unfair business. This commission can extend its works in areas as such concluding investment treaties to ensure that Bangladesh’s interest is attained. Now that an elected government is in power with a promise of change, it is high time that they explored pros and cons of such treaties that are still in effect and negotiate with the stakeholder countries. In this context, it is expected that in signing the future treaties, particularly regarding encouragement and protection of investment the government should do proper homework before finalising the decision.
   Meer Ahsan Habib works for the Centre for Policy Dialogue, a research organisation.

 

Source: The Daily New Age, 01 June 2009

 

BGMEA wants loan rescheduling for one more year

The Bangladesh Garment Manufacturers and Exporters Association demanded one year extension of the rescheduling facility for recession-effected industries.
   Meeting the governor of the Central Bank on Sunday, a BGMEA delegation headed by its president Abdus Salam Murshedy also demanded five per cent subsidy on the interest of bank loans of the industries.
   Export industries especially the garment units are struggling hard to compete in recession-hit western markets so they had sought interim fiscal supports from the government, said BGMEA president.
   He argued, ‘We need to reduce production cost because our competitors in China, India and Egypt are blessed by low cost finance there and so they are set to compete out us from recession-hit and price sensitive markets.’
   A few weeks back, the government had decided that exports units in selected sectors would have opportunity for rescheduling their unpaid bank loans, for next six months.
   Such rescheduling requires no down payment and the facility was announced to be availed up to the end of September.
   Sources at the BB governor office told New Age that the BGMEA leaders also demanded that the existing $150 million dollar Export Development Fund would be doubled immediately.
   The EDF provides loans to exporters at a lower interest rates and flexible conditions.
   UNB adds: Bangladesh Bank also assured the delegation of considering loans at only one percent interest for construction of dormitories for the garment workers.
   The central bank also turned down a proposal to cap the interest rate of leasing and finance companies similar to the banks’ lending rates considering that the leasing and finance companies borrow money from the banks at higher rates to lend others.
   Deputy Governor of Bangladesh Bank, Ziaul Hassan Siddiqui, told reporters after the meeting BGMEA demanded a premium of Tk 10 against each dollar of their exports, ‘We don’t have a dual exchange rate policy.’

Source: The Daily New Age, 01 June 2009

UNISDR: 2009 Global assessment report on disaster risk reduction: risk and poverty in a changing climate

29 May 2009

The United Nations International Strategy for Disaster Reduction Secretariat (UNISDR) released the first biennial Global assessment report on disaster risk reduction since the launch of the International Strategy for Disaster Reduction (ISDR) in 2000. This report, entitled Risk and poverty in a changing climate, stresses that disaster risk reduction can contribute to poverty reduction, development, and climate change adaptation; and consequently to global stability and sustainability.

It finds that disaster risk is disproportionately concentrated in developing countries, which have more vulnerable economies, often weak governance structures and high poverty levels. Therefore developing countries, including many small island developing states (SIDS) and land-locked developing countries (LLDCs) “suffer far higher levels of mortality and relative economic loss than developed countries when disasters occur. Weather-related hazards, poorly managed urban growth and territorial occupation, environmental mismanagement, declining ecosystems and climate change are identified in the report as driving factors for disaster risk. They disproportionally affect the poor, who are “less able to absorb loss and recover, and are more likely to experience both short- and long-term deteriorations in income, consumption and welfare,” the report notes.

Risk and poverty in a changing climate urges a paradigm shift in disaster risk reduction, as currently “efforts to reduce disaster risk, reduce poverty and adapt to climate change are poorly coordinated” and hardly linked to each other. The report underlines the need to link and focus the policy and governance frameworks for disaster risk reduction, poverty reduction and climate change adaptation in a way that can bring best practice local and sectoral approaches and tools into mainstream development thinking on disaster risk reducation. For this to occur, more international attention and consolidated political and economic support and commitment for disaster risk reduction are identified as necessary in the report.

The report concludes with various recommendations, among which a 20-point action plan to reduce risks in the future. This action plan calls for accelerated efforts to avoid dangerous climate change; increase the economic resilience of small and vulnerable economies; adopt high-level development policy frameworks to reduce risk; focus development policy on addressing the underlying risk drivers; adopt an approach supportive of local initiatives; invest to reduce risk; and to build on existing systems for public administration to incorporate innovations into the governance of disaster risk reduction.

Risk and poverty in a changing climate has been prepared and coordinated by UNISDR in partnership with the United Nations Development Programme (UNDP), the World Bank, United Nations Environment Programme (UNEP), World Meteorlogical Organization (WMO), United Nations Educational, Scientific and Cultural Organization (UNESCO), the ProVention Consortium, regional intergovernmental and technical institutions, national governments, civil society networks, academic institutions and many other ISDR system partners.

UN Conference on the World Financial and Economic Crisis Postponed to 24-26 June

26 May 2009    

The General Assembly this morning announced its decision to reschedule the Conference on the World Financial and Economic Crisis and Its Impact on Development to 24 to 26 June 2009, from its previously-scheduled dates of 1 to 3 June.

Opening the meeting, General Assembly President Miguel d’Escoto Brockmann said given the ongoing dire and critical global financial and economic situation and the utmost urgency for Member States and the United Nations system to find a common and lasting solution soon, and on the request of Member States, he proposed to reschedule the Conference.

Following extensive consultations with representatives of negotiating groups and regional groups, a consensus had been reached, he explained. A letter to that effect, dated 22 May and circulated today by the President, explained that it is the common endeavor to ensure the success of the Conference, which would depend on a “positive and forward-looking outcome document and the active engagement of the political leadership of the Member States at the highest possible level”.

He also stated in the letter: “I have heard the concerns expressed by some Member States”, and reiterated that the process would be open, comprehensive, transparent and inclusive, and, above all, driven by Member States. Committed to ensuring that the draft outcome document, “at all stages of its evolution”, would be negotiated and approved by Member States by consensus consistent with General Assembly resolution 63/277, the Assembly President appealed to all to agree on its text “no later than Monday, 15 June”.

Welcoming the decision to reschedule the meeting on behalf of the European Union (EU), the representative of the Czech Republic said, however, that the EU still had some concerns and reservations regarding the transparency of the process. In that connection, he noted the President’s assurances to make every effort to ensure transparency, and in light of those assurances, said the EU would be a strong partner in that regard and was ready to work with all Member States in the weeks and days ahead in a spirit of cooperation and inclusiveness. It was his hope that the meeting would produce consensual results.

The representative of the Sudan, speaking on behalf of the Group of 77 and China, expressed appreciation that consensus had been reached on the new dates. He said the good spirit that had prevailed during the recent negotiations would ensure the successful outcome of the international meeting, and he was fully confident that both the facilitators and Member States would spare no effort towards that goal.

Haiti’s representative, on behalf of Caribbean Community (CARICOM), said the group attached great significance to the upcoming meeting and viewed it as an important step to addressing the global financial and economic crisis. The meeting offered small island developing States like Haiti an opportunity to seek solutions to the financial crisis that would otherwise elude them. Thus, CARICOM welcomed the proposal to shift the meeting to the new dates. The importance that the regional organization attached to the meeting had been fully expressed at CARICOM’s recent ministerial meeting, at which member countries committed themselves to attending the high-level Conference. The ministers had accepted the new dates and had called on the General Assembly President to write to all Member States urging them to attend the meeting.

In closing today, the Assembly President said he would soon inform Member States of the first meeting of intergovernmental negotiations on the Conference’s draft outcome document. He urged Permanent Representatives to attend that meeting, which he said would be open.

Trade policy in the crisis: What implications for development?

The global financial crisis has raised fears of a shift to protectionist trade policies, which could reverse decades of progressive liberalisation. However, no clear evidence has emerged on how trade policies have responded to the crisis and the implications for developing countries’ trade prospects are still unknown. Now we should rethink of Trade whether it would be liberalised totally or not, giving special focus on three issues: (1) whether and how the global crisis has affected trade policy across countries; (2) the extent to which trade policy responses to the crisis have influenced developing countries’ capacity to trade; and finally, (3) what types of policies may maximise the developmental benefits of trade during the crisis, as well as the possible role of multilateral institutions in promoting such policies.

On 28 May 2009, Ministers, trade officials and senior government officials from around Asia today gathered in Siem Reap, Cambodia to discuss the impact of the global crisis on trade, how Aid for Trade can support private sector growth, and how to include trade into national development strategies.

We attached here the basic information about meeting on Trade Policies in the era of financial crisis and role of aid for trade  for creating a vibrant debate to rethink about trade policies in era of financial crisis. Readers and critiques are welcome to expedite the deabte.  

28 May 2009

AID FOR TRADE

WTO, ADB urge more Aid-for-Trade efforts to counter the economic crisis

Ministers, trade officials and senior government officials from around Asia today gathered in Siem Reap, Cambodia to discuss the impact of the global crisis on trade, how Aid for Trade can support private sector growth, and how to include trade into national development strategies.

Siem Reap, Cambodia

At the conference, Asian Development Bank (ADB) President Haruhiko Kuroda and World Trade Organization (WTO) Director General Pascal Lamy urged ongoing efforts to support trading activities in the face of the prolonged global financial crisis and the risk of protectionism.

“Developing countries, particularly least-developed countries and small states, need Aid for Trade not simply to weather the crisis, but more importantly, to prepare for longer-term development and structural adjustment,” Mr. Kuroda said in a keynote speech on the opening day of the two-day meeting.

Mr. Lamy stated that: “Trade is an essential ingredient to exit the crisis. But to keep the wheels of trade turning we need trade finance to flow. And to make trade work for the people we need renewed efforts on Aid for Trade. This is the time for global solidarity.”

As part of those efforts, Mr. Kuroda and Mr. Lamy announced that Cambodia and Japan will lead an Asia-Pacific regional technical group on Aid for Trade. The regional technical group is tasked with preparing plans for stepping up Aid for Trade in Asia and the Pacific and will report at the Second Global Review on Aid for Trade to take place in Geneva, Switzerland on 6-7 July 2009.

Aid for Trade was conceived in December 2005 to help developing nations, in particular least-developed countries, around the world to bolster their capacity to trade. Asia has long suffered an uneven trade status. The newly industrialized economies like Hong Kong, China and the Republic of Korea, as well as the People’s Republic of China and India, are integrated into world markets but the region’s 22 least developed and smaller economies still account for just 0.3% of world exports. This level has barely increased over the last 25 years.

In tandem with national efforts to mainstream trade into national development strategies, Aid for Trade aims to help countries overcome the supply side and economic infrastructure constraints that undermine their ability to engage in regional and global trade.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members — 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

The World Trade Organization, based in Geneva, is the international organization whose primary purpose is to open trade for the benefit of all. WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development.

RMG factory set ablaze amid labour unrest: Cops fire blank shots to disperse demonstrators demanding payment of arrears; 10 hurt

Workers demonstrating for arrears allegedly set fire to a garment factory at Hemayetpur in Savar yesterday, damaging all the machinery of the factory and garment products.

Witnesses said the workers of Mohammadi Fashion 2000 Ltd, a sister concern of Mohammadi Group, torched the factory around 1:00pm and the fire continued till evening.

Police fired around 40 blank shots and charged batons on the agitating workers, leaving at least 10 persons injured.

Local sources said some 550 workers burst into violence at about 12:30pm, as the factory authorities were not paying their dues. At one stage, they set fire to the three-storey building of the factory.

Police blamed the workers for the arson. But the factory authorities and fire fighters could not tell anything clearly about the cause of the fire.

The agitating workers brought out processions protesting against the non-payment by the factory authorities and put barricades on Hemayetpur-Shingair road during the violence causing traffic jam.

Sources said the workers had been demonstrating for the last several days demanding their payments, including overtime and other allowances.

Several units of fire fighters in presence of the members of Rapid Action Battalion (Rab) and police doused the blaze after a long struggle. A group of workers initially prevented the fire fighters from reaching the spot of the fire.

When contacted, Reazul Huq Reaz, compliance manager of Mohammadi Group, said, “Though the factory is running at a loss, we have been paying salaries of the employees. But we made two days late to pay the overtime dues.”

“Without investigation, we do not want to blame workers for torching the factory,” said Reaz.

AKM Nasir Ullah, officer-in-charge (OC) of Savar police station, told The Daily Star that the angry workers set fire to the factory as the authorities had been making dilly dally over the payment of workers.

The OC said police went into action and fired at least 38 blank shots to disperse the workers. No arrest was made yet in this connection, he added.

Fire Service and Civil Defence officials said the fire came under their control around 7:00pm but they could not ascertain the cause of the fire and its loss.

Source: The Daily Star, 28 May 2009

$62.20m WB aid to improve air quality in Dhaka

The International Development Association, World Bank’s concessionary arm, will give Bangladesh $62.20 million in credits under an agreement signed in Dhaka Wednesday to help improve air quality and safe mobility in the Dhaka city.
   A World Bank release said the World Bank Board approved the credit on May 12.
   Greater Dhaka’s population is projected to reach 20 million by 2020 and poor air quality in urban area creates serious health hazards, adversely affects environment and quality of life.
   The donor-funded clean air and sustainable environment project is designed to reduce air pollution in the capital city by addressing two main air-polluting sectors — the brick construction and the transportation.
   ‘Air pollution is one of the leading causes of mortality and morbidity in Bangladesh,’ said Xian Zhu, country director of the World Bank.
   ‘The industrial and transport sectors are likely to grow manifold in Dhaka. This, in turn, will drive the growth of air pollutants and greenhouse gas emissions, unless efforts are initiated immediately to reduce these sources of air pollution,’ he said.
   Xian Zhu said: ‘We are happy to be able to respond to the government’s request to tackle Dhaka’s environmental, transport and traffic challenges.’
   The CASE project will provide technical assistance to the ministry of environment and forest to improve air-quality monitoring in Bangladesh and also introduce cleaner technologies, in the very polluting brick-manufacturing sector.
   These energy-efficient new technologies will reduce energy consumption and lower air pollution, hence improving overall environmental quality.
   In urban transport, the project will introduce low-cost measures to reduce conflict between motorised and non-motorised transport, reduce congestion and provide safer and cleaner mobility for pedestrians in pilot areas in Dhaka.
   ‘Close collaboration between Dhaka City Corporation, Dhaka Transport Coordination Board and Dhaka Metropolitan Police is essential for the success of this project,’ the multilateral funding agency said.

Source: The Daily New Age, 28 March 2009

BNP govt sold out jute mills at throwaway prices

The BNP-led four-party alliance government had sold out a number of jute mills at throwaway prices at the fag end of its tenure in a bid to hand over them to the private sector.

The parliamentary standing committee on jute and textile ministry revealed this at a meeting held at the parliament building yesterday.

The committee also recommended scrapping the deals made by the previous BNP government to privatise three state-run cotton mills, as the buyers failed to comply with the terms and conditions.

The parliamentary body also asked the ministry to again invite tenders to privatise these mills.

Talking to reporters after the meeting, the standing committee Chairman Akhtaruzzaman Chowdhury said, “We have found out that a number of state-run jute mills were sold out at a very low price.”

For example, International Trading Company at Nikli, Kishorganj, has been sold at Tk 64 lakh, although the authorities estimated its price at Tk 2.59 crore, he added.

Even the market prices of these industries are several times higher than the prices estimated by the deputy commissioners, he said.

“We have asked the ministry to submit a detailed report on such irregularities at the next meeting of the committee,” Akhtaruzzaman said, adding that the committee will place its recommendations for action against the persons responsible on the basis of the report.

He also said, “The committee has recommended cancelling the privatisation deals for Olympia Textile Mills, Monno Textile Mills and National Cotton Mills as they did not pay money as per terms and conditions.”

Source: The Daily Star, 27 May 2009

ADB pledges assistance in development

Asian Development Bank (ADB) will assist in development efforts in Bangladesh, said Country Director Paul J Heytens yesterday.

The assurance came as Heytens met with State Minister for Foreign Affairs Dr Hasan Mahmud at his office.

Mahmud termed ADB an important development partner for Bangladesh.

The state minister sought assistance of ADB in development of the communication systems in Bangladesh. He said Bangladesh is now emphasising environment-friendly development.

Mahmud said it is vital to dredge rivers to facilitate water links.

Relying on solar power could reduce the power crisis in the country, Mahmud said. He also sought ADB cooperation in the production and instillation of solar power panels.

The state minister requested the ADB country director include his constituency, Rangunia, in the ADB development project taken under the Chittagong Hill Tracts (CHT) Rural Development Project.

Mahmud said Rangunia is important to communications between Chittagong and the CHT. Heytens accepted the state minister’s proposal and said Rangunia would be included in the project next year.

Heytens assured the state minister that his organisation would continue to cooperate in increasing efficiency in Bangladesh public administration, building a Digital Bangladesh, preventing climate change, and improving communications system and infrastructure.

Source: The Daily Star, 27 May 2009

Lawmakers’ team to visit Tipaimukh, said Faruk Khan

Commerce Minister Faruk Khan yesterday said the prime minister will send a team of parliament members and experts to the Tipaimukh dam site in India for a firsthand view of the gigantic project involving a common river.

Talking to reporters on the sidelines of a regional seminar at Sonargaon Hotel in the city, he deplored that those who are talking much on the issue actually talk without knowing the fact.

He said the team will see as to how Bangladesh could derive benefit from the Tipaimukh dam on the Borak River.

“If Tipaimukh dam is not beneficial for Bangladesh, then it will not be put in place. Bangladesh will not give its clearance for the project,” Faruk said.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Saarc Chamber of Commerce and Industry (Saarc CCI) jointly organised the seminar titled ‘Regional Connectivity: Potential for Infrastructure Development and Energy in South Asia.’

Saarc Chamber President Tariq Sayeed, FBCCI President Annisul Huq and Vice-President of Saarc CCI Mir Nasir Hossain also addressed the business meet.

Addressing the seminar, the commerce minister said the South Asian region is rich in terms of water and energy resources. But, for a lack of equal distribution, this potential still remained untapped.

He viewed that this is the proper time to utilise the opportunity and potential as all the countries in the region have got democratic governments.

Emphasising regional connectivity, the minister said Bangladesh is very much interested to establish a regional road and railway network.

He also suggested building a trans-border gas network from Iran to Myanmar, connecting Pakistan, India, Bangladesh and other countries in the vast region.

Referring to the huge hydro potential, Faruk said there could be thousands of megawatts of power generation from this hydro resource.

The commerce minister offered the country’s Mongla seaport to turn into a regional port to be used by China, Bhutan and Nepal as well.

Mir Nasir Hossain said freedom of movement should be allowed for more people for contacts across the borders and the visa regime in South Asia needs to be more open.

He proposed issuance of five-year multiple visa without police reporting and city restriction for at least 500 businessmen and increase in Saarc visa exemption stickers from 100 to 300 for each country.

FBCCI President urged an increase in the regional trade and infrastructure under Saarc umbrella.

He noted that the Saarc region is yet to achieve the goal of establishing a regional free-trade area like NAFTA or ASEAN.

He observed that still the intra-Saarc trade within the regional countries is only 5 percent while it is in NAFTA 52 percent, in the European Union 52 percent and in ASEAN 24.5 percent.

Source: The Daily Star, 27 May 2009