GTAP Resources: Resource Display
| GTAP Resource #1362 |
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"South Asian Free Trade Area: An Analysis of the Policy Options for Bangladesh" Authors: Asaduzzaman, M., Nazneen Ahmed, Sharif Mosharraf Hossain and Subrata Sarker Abstract The creation of a South Asian Free Trade Area is a widely discussed policy issue in this region. The lack of consensus among the nations in the region on the rules of such an arrangement restrains its entry into force. In the mean time, India and Sri Lanka have signed a bilateral free trade agreement, which may have negative impact on Bangladesh. Against this backdrop, Bangladesh is considering a bilateral free trade agreement with India. Another proposal is to have a free trade arrangement with Sri Lanka. The present paper compares the outcomes of such policy options for Bangladesh. Simulation results with the Global Trade Analysis Project (GTAP) model indicate that it may be harmful for the economy to wait for a consensus on SAFTA rules because of the prevailing free trade arrangements between India and Sri Lanka. Bangladesh may continue with SAFTA negotiation and at the same time give more stress on building up strategies to gain from multilateral arrangements. As a second best option, immediate initiatives to form Bangladesh- India FTA may compensate for the welfare loss from existing India – Sri Lanka FTA. However, if non-tariff barriers (NTBs) such as complex procedural matters continue despite tariff withdrawal, the expected benefits are unlikely. |
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- Preferential trading arrangements |
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Public Access  GTAP Resource 1362 (169.2 KB) Replicated: 4 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 8/24/2026 8:40:13 AM
