Siddique Islam

NEW DELHI: Rising prices of food and fuel are major challenges facing the South Asian countries and other least developed and developing nations across the world.

Against this backdrop, policymakers of the countries should give serious thought about how to stave off the challenges and ensure development to reduce poverty.

This was viewed at the inaugural session of the Third South Asian Conference on Trade and Development, held in New Delhi Wednesday. The conference has been organised by the Centre for Trade and Development (CENTAD).

India's Commerce and Industry Minister Kamal Nath, who formally inaugurated seminar, identified two 'Fs' -- food and fuel -- as major concern hurting the Asian economies.

He also called for providing 'social security net' to farmers and harnessing the gains from agriculture through proper restructuring the sector, and facilitating greater movement of available agricultural workforce to manufacturing and service sectors.

On the issue of climate change, the Indian minister criticised the inequitable pressure on India and China to reduce emission and favoured the 'common but differentiated approach' to mitigate the adverse impact of climate change and trade.

The minister also released the summary of recommendations of the South Asia Yearbook of Trade and Development 2007-08, published by the CENTAD titled 'Harnessing Gains from Trade: Domestic Challenges and Beyond.'

Charan Wadhva, Professor Emeritus of the Centre for Policy Research of India, talked about the important role of non-governmental organisations (NGOs) participating in trade talks to discuss the necessity of providing a human dimension to trade talks.

Commending India's commerce minister's position that agriculture is important for Asia, Wadhva said, "India can negotiate commerce but not livelihood of farmers."

BS Chimni, Chairperson of the Centre for International Legal Studies of Jawaharlal Nehru University of India, criticised the present trading system as 'unfair' which leaves little room for policy space and inclusive growth.

Muhammad Saeed of the Permanent Mission of Pakistan to the World Trade Organisation (WTO) in Switzerland said the SAARC countries are not united and they do not have a common interest even though they have similar position in most multilateral forums.

"There is no united position among the SAARC member countries on the WTO negotiation," Saeed said, adding that the SAARC countries should sit together for ensuring united position for multilateral trade negotiations.

Describing trade position of Bangladesh with other SAARC countries, former Commerce Secretary Sohel Ahmed Chowdhury said Bangladesh's trade with the South Asian countries is not significant. It remains less than five per cent compared to its total trade for most of the time.

He also said growth in exports to India and Pakistan in recent years is encouraging.

Even in 1990, Bangladesh's export to other SAARC countries was only US$62.75 million or 4.12 per cent of its global exports. By 2000, it reached $102.92 million, according to Ahmed.

Muhammed Iqbal Ahmed, research associate of the Unnayan Onneshan of Bangladesh, said Bangladesh's exports are highly concentrated in one item -- readymade garment -- and two markets, particularly the US and the EU.