ECONOMYNEXT – ASEAN countries have potential to expand intra-regional trade relations by signing more free trade agreements, State Finance Minister Shehan Semasinghe has said.
“Regional free trade agreements play a critical role in implementing an institutional framework that provides a stable operating environment for the success of trade and investment,” Semasinghe told a BIMSTEC discussion held on the sidelines of the Raisina Dialogue 2024 in New Delhi, this week.
An agreement to create a framework for a free trade agreement for BIMSTEC was agreed 20 years ago in 2004, but no progress has been made in implementing this, Semasinghe noted in a facebook post.
Several BIMSTEC countries have bilateral trade agreements, such as Sri Lanka and India, Thailand and Myanmar, Sri Lanka and Thailand, but no collective regional agreement to enable intra-regional leverage, Semasinghe pointed out.
“Such an agreement, which strikes a balance between trade potential and protection of vulnerable sectors, could boost intra-regional trade as well as trade between BIMSTEC and the rest of the world.”
Due to the current high global interest rates, there was a huge financial need to fund long-term investment needs in energy, infrastructure and climate mitigation, Semasinghe told representatives of Nepal, Bangladesh, Bhutan and India.
Sri Lanka is encouraging regional investments in power generation and is in discussions with India on electricity connectivity to enable energy trade. (Colombo/Feb26/2024)