PTA to be operational by October to boost trade among D-8 nations

The Preferential Trade Agreement (PTA) among D-8 countries will be fully operational by October this year, leading to the creation of an immense opportunity for intra-trade within the bloc.  

After seven of its member states, Egypt also agreed to sign the PTA at the 20th D-8 council of ministers meeting held in Dhaka on Wednesday in a hybrid format.

D-8, also known as Developing-8, is an organisation promoting development cooperation among Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkiye.

"The time has come for the 25-year-old forum to expand its focus also on the implementation of PTA, increased trade, ICT, diversification of agriculture for attaining food security and finding sources of alternative energy," Prime Minister Sheikh Hasina said at the inaugural session of the meeting at the InterContinental hotel.

"The implementation of the PTA is an important element for a successful D-8, which has large domestic markets. It will help harmonise intra-country trade, liberalise barriers, and stimulate trade and economic cooperation among the member states," she added. The prime minister joined the programme through video conferencing from her official residence Ganabhaban.

Intra-D-8 trade will help accelerate its business prospects, she said, adding that the forum should aim at doubling intra-D-8 trade from $129 billion in the next decade.

The premier proposed the establishment of a D-8 Economic Zone in Bangladesh for investments by member countries aimed at accelerating their collective economic growth.

The offer came in a five-point proposal she made at the meeting. Sheikh Hasina said Bangladesh is ready to provide space in its special economic zones for investment by member states.

"If it begins the process now, within the next decade there will be a robust D-8 economic zone," she added.

The prime minister stressed the need for working together to harness D-8 countries' potential to become a powerful economic bloc.

She expressed her happiness because Bangladesh is celebrating this historic moment of the 25th anniversary of the bloc's establishment as the chair of the organisation.

At a press conference on the outcome of the D-8 meeting on Wednesday, Foreign Minister AK Abdul Momen said, "The finalisation of Draft Trade Facilitation Strategy is underway with a view to the speedy implementation of D-8 PTA. This issue was reviewed in this meeting and it is expected that the strategy will be approved in the 3rd Trade Ministers Meeting to be held in Bangladesh soon."

"Bangladesh has about $10 billion of trade with the D-8 countries and we want to expand it further," he added.

The PTA, signed in May 2006 in Indonesia's Bali, is regarded as one of the most tangible outcomes of D-8 cooperation in trade.

The agreement has been a manifestation of the mutual desire to deepen trade relations among the member states and marked the beginning of economic dialogue at a higher level.

In response to a question, Momen said, "Tariff barriers are very high among D-8 countries. Turkiye is an example. The kind of products that we make, they also make the same kind of competitive products."

But for now, a consensus has been reached that in some cases there will be PTA. This will increase intra-trade, he added.

"RMG is our largest exportable item. We are in discussion on market access for it. But it is not coming under PTA now," Momen went on.

Currently, Bangladesh has PTA with only Bhutan, which was effected in June this year.

Meanwhile, realising the need for increased intra-D-8 cooperation in the energy sector in these times of an ongoing global energy crisis, the foreign ministers and the ministers of state decided to organise the first D-8 Ministerial Meeting on Energy. However, the date of the meeting has yet to be finalised.

Regarding the import of oil from Iran, Momen said, "There are some obligations in terms of import from that country. We abide by them."

Prime Minister Sheikh Hasina also suggested that the D-8 member states be careful about energy use and the necessity of alternative energy sources.

She proposed that the D-8 focus on developing capacity by involving other countries that have expertise in alternative energy.

The PM said the forum should concentrate on diversified agriculture production to ensure food security and a steady food supply.

Momen mentioned that D-8 membership for Azerbaijan was discussed at the meeting. No countries opposed it.

"But the procedure of adaptation to a new country will be discussed later," he added.

After the opening ceremony, the foreign ministerial meeting commenced. The foreign ministers of Turkey and Iran delivered speeches virtually. Besides, three foreign ministers and two representatives participated virtually.

In response to a question on how optimistic he is about the conference as the foreign ministers or state ministers of the member states did not directly participate in the D-8 meeting, Momen said, "We had to hold a meeting in a hybrid format because of the new variants of Covid-19 in different countries."

He ruled out the doubts of many about the outcome of the meeting when ministers did not take part in it in person.  

Bangladesh to remain chair of D-8 for another year

Bangladesh will remain chair of D-8 for another year as Egypt will remain busy with the Conference of the Parties (COP27).

The member states accepted the proposal when Egypt came up with it at the D-8 Ministerial meeting, said Momen.

The D-8 countries are home to about 13% of the world population. The group accounts for almost $4 trillion of GDP and $1.5 trillion of export.

Established in 1997, the objectives of the forum are to improve member states' position in the global economy, diversify and create new opportunities in trade relations, enhance participation in decision-making at the international level and improve standards of living.

D-8 Secretary General, Ambassador Isiaka Abdulqadir Imam, State Minister for Foreign Affairs Md Shahriar Alam, and President of D-8 Chamber of Commerce and Industries Sheikh Fazle Fahim also spoke on the occasion.

The Secretary of the Ministry of Foreign Affairs, Masud Bin Momen, delivered the welcome address.