Dhaka: Bangladesh needs to demonstrate a strong drive in making coastal shipping line operational with Myanmar and establishing banking facilities there to tap the huge business potential offered by the Southeast Asian nation, said a bilateral trade body.

‘We need formal transaction channel and direct shipping connectivity with Myanmar urgently. This is the right time to settle these,’ President of Bangladesh-Myanmar Chamber of Commerce and Industry (BMCCI) SM Nurul Hoque told reporters on Monday at a city hotel.

Connectivity, especially coastal shipping line operations and establishing formal banking channel in Myanmar, should be given priority during the two-day 8th joint trade commission meeting between Bangladesh and Myanmar to be held here on November 9-10, he said.

‘The trade relations between Bangladesh and Myanmar will reach new heights once the coastal shipping line is launched,’ Nurul Hoque said.

BMCCI Executive Director M Musleh Uz Zaman said the other countries which are far away from Myanmar compared to Bangladesh are doing good business with Myanmar but Bangladesh, being a close neighbour is yet to utilise the opportunity.

‘We can do very good business with Myanmar. We just need to address the issues with priority basis. I think it is the right time to give a big push,’ he added.

The coastal shipping line between the two countries was supposed to be made operational much earlier but remains pending for long.

A coastal shipping line will help Bangladesh send goods, including readymade garment items, to Myanmar directly. Now Myanmar's customers buy garment items made in Bangladesh from Thailand, according to BMCCI.

‘A draft standard operating procedure, or SOP has already been finalized,’ Zaman said mentioning that approval of long overdue coastal shipping line operation should be given highest priority in the joint commission meeting.

Responding to a question, BMCCI President Nurul Hoque said there should be ‘coordinated’ efforts from the relevant ministries to put required facilities in place for smooth business operation between the two countries. ‘We also need some confidence building measures.’

He said Myanmar is the current chair of Asian Clearing Union (ACU) which is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis.

‘This is the right time to formalize the payment channel in line with international standard. Few foreign banks have also opened up branches in Myanmar,’ Nurul Hoque said.

He said border trade ceiling need to be increased up to a proposed amount of US$ 100000 from the current ceiling of US$ 50,000 until the execution of banking channel transaction.

The BMCCI President said issues related to cultural exchange, agriculture knowledge transfer, investment issues and signing free trade agreement between the two countries can be discussed.

He said Bangladesh can export garment, garment accessories, pharmaceuticals products, electrical and electronic items and building materials to Myanmar.

The BMCCI leaders said garment or industry entrepreneurs can take the advantage of setting up and producing in Myanmar.

There is a huge terrorist flow in Myanmar from around the world and Bangladesh can be added as extended destination for the tourists, Nurul Hoque said adding, ‘Bangladesh can take the advantage by allowing easy visa and access.’

Bangladesh imports spices, lentil, fish, onion, garlic and ginger from Myanmar at cheaper prices.

Myanmar is rich in wood; once the coastal shipping line agreement is in place, Bangladesh can import wood from this country to meet the demand of the local furniture sector.

At the two-day meeting, the two sides are likely to discuss signing of preferential trading arrangement and ways for smooth trade between the two countries.