Thailand and Bangladesh to Double Bilateral Trade and Enhance Connectivity

(24/12/2012)

Thailand and Bangladesh have agreed to double bilateral trade by 2016 and enhance connectivity through land and sea linkages between ASEAN and South Asia. Prime Minister Yingluck Shinawatra and Bangladeshi Prime Minister Sheikh Hasina discussed bilateral issues during the official visit of Prime Minister Yingluck to Dhaka on 21-22 December 2012. Trade between Thailand and Bangladesh stood at 1.2 billion US dollars in 2011, an increase of 38 percent over the previous year. Thailand proposed that Bangladesh use Thailand as its gateway to ASEAN, while Bangladesh will be Thailand’s gateway to South Asia. Both countries agreed to revive the implementation of the Thai-Bangladeshi Joint Trade Committee to promote bilateral trade and investment. Prime Minister Yingluck stated that Thailand’s economic growth in 2012 was about 5.5 percent and is expected to be 5.6 percent in 2013. Bangladesh also enjoyed economic growth of 6-7 percent. She pointed out that both countries had great potential for further expansion of their economic partnership. So they should cooperate more in increasing trade and investment. Concerning the rice issue, the Bangladeshi government is interested in buying rice from Thailand in accordance with a memorandum of understanding (MOU), signed between the two countries. In the MOU, Bangladesh agreed to buy Thai rice at a volume of not over one million tons a year for a period of three years, from 2011 to 2013. During the discussion between the leaders of the two countries, both sides agreed to extend the period of the MOU for another three years. They also witnessed the signing of an MOU between the Ministry of Agriculture of Bangladesh and the Ministry of Agriculture and Cooperatives of Thailand on cooperation in agriculture, fisheries, and livestock. Regarding investment, Thailand was urged to invest more in Bangladesh, especially in infrastructure development, food production, electricity generation, and energy development. Bangladesh is also ready to support Thai investors wishing to invest in the development of an industrial estate in Bangladesh’s special economic zone. Bangladesh hailed Thailand’s success in tourism development and showed its interest in cooperating more with Thailand in the tourism industry, especially medical tourism. A number of Bangladeshi citizens seek medical treatment in Thailand each year. In this regard, Thailand is willing to offer technical assistance to help develop tourism in Bangladesh. It would also seek more investment opportunities in the tourism and service business in Bangladesh. Thailand also reaffirmed its intention to continue to provide 40 scholarships to Bangladeshi students to study in Master’s degree programs in Thailand, as part of the celebration of the 40th anniversary of their diplomatic relations in 2012.