PM Sheikh Hasina's Bangkok Visit Can Raise the Height of Bangladesh-Thailand Ties

 

Prime Minister Sheikh Hasina's recent 6-day visit to Thailand provides an opportunity for both Dhaka and Bangkok to improve relations with a regional ally, which Bangladesh must continue to seek as it moves closer to graduating from the least developed nation (LDC) category.

Bangladesh has always seen Thailand as a trustworthy and dependable ally. Since our independence, both nations have maintained a friendly relationship. And, given that both nations share a regional platform such as BIMSTEC, one would anticipate a productive commercial cooperation. The visit is part of a larger emphasis on neighbourhood policy, and it has offered an opportune chance for the two nations to restart the momentum in their bilateral ties.

Following a bilateral meeting at Government House, Bangladesh Prime Minister Sheikh Hasina and Thailand Prime Minister Srettha Thavisin signed five bilateral documents in Bangkok, including an agreement, three memorandums of understanding (MoU), and a letter of intent (LOI). Bangladesh and Thailand have signed five bilateral agreements for visa-free travel, energy, tourism, and customs cooperation, and the negotiation of a Free Trade Agreement (FTA).

The agreements include an agreement on visa exemption for holders of official passports, memorandums of understanding on energy cooperation, cooperation and mutual assistance in customs matters, tourist cooperation, and a letter of intent to begin discussions on a free trade agreement (FTA) by 2024. Indeed, in terms of Thailand-Bangladesh relations, it is exciting to learn about the memorandums of understanding (MoUs) on energy cooperation, tourism, and customs, as well as the letter of intent to begin discussions on a Free Trade Agreement, which was signed by the two countries and offers mutual benefits. The agreement and MoUs inked by Dhaka and Bangkok on Friday will create a strong basis for strengthening their bilateral relations.

Thus, the prime minister examines the connections in this manner. Bangladesh and Thailand have the potential to enhance cooperation in trade and investment, food security, tourism, public health, energy, and ICT, Prime Minister Sheikh Hasina said on Friday, describing her official visit to the nation as a watershed moment in their bilateral ties. Our connection is strongly anchored in history, language, and shared cultural heritage. Our two friendly nations' warm and cordial ties are strengthening in a variety of sectors of cooperation, including commerce and investment, sustainable development, people-to-people connections, and connectivity.

However, with the two countries' economic connection mostly unexplored, there is enormous potential for strengthening economic collaboration. It is encouraging to see that both governments recognize this truth and priorities the elimination of trade obstacles and the simplification of processes to enable easier trade flows. In addition to economic cooperation, Bangladesh and Thailand have similar goals in battling climate change, fostering sustainable development, and tackling regional security issues. Enhanced collaboration in these sectors may result in the exchange of best practices and technology transfer, benefiting the region's overall economy and security.

Tourism is an especially fascinating option to pursue; cultural exchanges play an important role in establishing people-to-people relationships and improving mutual understanding. It is incredibly exciting that both Bangladesh and Thailand want to explore opportunities to boost tourism via cooperative activities and the sharing of experience in the areas of human resource development, Buddhist circuit tourism promotion, and tourist area investment. Diplomacy is one of Bangladesh's most successful weapons for growth, and the moment is right for Bangladesh and Thailand to take their bilateral ties to new heights. Both governments must take this opportunity to build a stronger and more long-lasting alliance.

Bilateral commerce between these nations has increased in recent years, particularly on the commodities sector. In 2018 and 2019, Thailand hosted a four-day trade show in Dhaka. It was incredibly beneficial since many Thai firms, including big Thai brands, took part. As a consequence, the Bangkok Post reports that Bangladesh has become Thailand's third biggest trading partner in South Asia. In 2018, bilateral trade totaled $1.25 billion. That number actually fell by almost 17% in 2019.  Both nations are now negotiating on a free trade deal to boost commerce. To address bilateral problems, the joint trade commission (JTC) has been established.  During its negotiations, Bangladesh was urged to enhance its investments in Thailand. Thailand, on the other hand, has agreed to enhance Bangladeshi exports to its nation.

Thai exports have controlled most bilateral trade to date. For example, the total value of commerce in the first 11 months of 2019 was $980.41 million, with Thai exports accounting for $905.1 million. This figure includes imports of electrical equipment, electronics, iron and steel, organic chemical products, cement, cereals, plastics and articles made from them, man-made staple fibres, sugar and sugar confectionery, machinery and mechanical appliances, cotton and cotton fabrics, synthetic fibre, and cotton.

Meanwhile, Bangladesh primarily exports leather and leather products, medicines, marine fish and other animal products, paper and paper pulp, soap, apparel articles, plastic and rubber products, electrical and electronic equipment, manufactured textile articles, animal-derived products, vegetable textile fibres, fish and crustaceans, and so on. Even though the government has sought Bangladeshi investment, Thailand has not made large investments in Bangladesh. According to BEPZA and BEZA of Bangladesh, the country is establishing 100 free economic zones for international enterprises. It also offers "one stop service" to overseas investors. Bangladeshi items have a large potential market in Thailand.

With the tremendous amount of economic and infrastructure growth over the previous decade, Bangladesh should now be a top priority for Thai investors. To make our nation more profitable, the government is contemplating assigning land to create a Special Economic Zone (SEZ) in Thailand. Potential investors might also consider investing in Bangladesh's energy production, regional connections, and services industry. Tourism is also an attractive business opportunity for Thai investors, particularly given the experience they would offer to the Bangladeshi sector.

Mutually advantageous provisions must be included in the proposed free trade agreement. Bangladesh has asked the Thai government for duty-free access to pharmaceuticals, leather products, jute and jute textile fabrics, textiles made of jute yarn, knitted and woven shirts, T-shirts, knitted garments, women's towels, and cotton shirts.

Every year, China, India, Vietnam, and Indonesia ship large amounts of clothes to Thailand under duty-free conditions. Bangladesh, as one of its most important trading partners, should profit from this as well. It will also significantly decrease trade disparities between the two nations.

Bangladesh is an emerging economic superpower. The Matarbari deep seaport and Cox's Bazar airport will be critical in expanding connections between Thailand and South Asia, making it a potential commercial centre. A mutually advantageous free trade deal would not only galvanize both economies, but it may also uncover hitherto untapped opportunities. To retain their respective prosperity, both countries must actively seek economic cooperation.


Md Shoriful Alom is a freelancer
and a columnist.