Address by the Hon'ble Foreign Minister
Seminar on "Bangladesh - India Relations:
Context of SAARC and Emerging Global Scenario"
organized by CDRB, Dhaka; 3 p.m., 6 April 2006

Chairman, CDRB
Excellencies
Distinguished Guests, Discussants
Ladies and Gentlemen,

Assalamu Alaikum and good afternoon to all of you.

I am indeed very happy to be here. Let me first of all thank Dr. Shelly and CDRB for organizing this seminar on such a topical issue. We have just successfully concluded the Hon'ble Prime Minister's visit to India. Prior to that, in November last, the 13th SAARC Summit was held in Bangladesh with equal success. It is in this context that this Seminar assumes great significance. I would like to take this opportunity to share a few thoughts with you on Bangladesh-India relations in the context of SAARC and the emerging global scenario.

Bangladesh and India are close neighbours whose relationship is based on many commonalities: shared history, geographical proximity, ideas, traditions and culture. The bonds between our two countries were indelibly cemented during our War of Liberation in 1971. In subsequent years, our relationship saw its ups an downs as is perhaps natural for two neighbours. In recent times, our efforts have been focused on remaining engaged at all levels, for the mutual benefit of our two countries.

In recent months, you will have noticed a series of high-level bilateral interactions on key issues. Last year, the Indian Ministers for External Affairs, Water Resources and Petroleum and Natural Gas visited Bangladesh. From our side as well there were a number of important visits including my own. The height of all these interactions was, of course, the meeting of the two Prime Ministers on the sidelines of the 13th SAARC Summit in November 2005. Since our two countries were in continuous touch with each other, it helped in carrying forward the relationship to newer heights.

The just concluded visit of the Hon'ble Prime Minister provided an opportunity to discuss, in a frank and candid manner, the entire gamut of our relationship. At the conclusion of this visit, I can tell you all that our bilateral relations are now on a solid footing, grounded in reality and motivated by a common desire to work together for the good of our people. A cardinal factor that must be underlined was recognition that the two countries deal with the government in power and eschew domestic politics. The two sides expressed their resolve to maintain high-level political dialogue. In this context the two leaders warmly recalled their fruitful meeting in Dhaka during the 13th SAARC Summit, which was followed by the current bilateral meeting. They recognised that Bangladesh as current Chairman of both SAARC and BIMSTEC would be succeeded by India in both the regional groupings. Thus the momentum of high-level contact would be meaningfully sustained. At the same time, the two leaders underscored the importance of making full and effective use of the existing institutional mechanisms and to ensure that they would meet not only regularly but also more frequently and their outcome would be monitored by the political leadership on a continuous basis.

That the meeting was held in a constructive and upbeat mood is highlighted by several other positive factors. Two important agreements were signed: (i) the Revised Agreement on Trade and (ii) Mutual Cooperation for Preventing Illicit Trafficking of Narcotic Drugs and Psychotropic Substances. A third agreement on the Promotion and Protection of Investment was finalized; but its signature was delayed due to last minute procedural hurdles.

There was a free and frank exchange of views during the visit, with both sides placing their major concerns on the table in a spirit of objectivity, openness and candor. By ring-fencing their concerns, there was a tacit understanding to seek advances towards resolution even on an incremental basis. There was strong optimism that a process of forward momentum had been activated. Thus critical issues pertaining to trade, water sharing, adverse impact of water diversion, activities of insurgent groups, militancy and counter-terrorism, border control and management, movement of people across borders and land boundary issues were all firmly placed on the table. Both sides reaffirmed their commitment to work closely together to find mutually satisfactory solutions to the problems raised. They have agreed to take them up at meetings of established institutions on a regular and more frequent basis.

While expressing their satisfaction over the successful hosting of the 13th SAARC Summit in Dhaka in November 2005, the two leaders agreed that the positive outcome of the Summit would enable SAARC members to achieve specific economic and social objectives and thereby advance the regional economic agenda.

Perhaps more important than the substantive agenda was a visible eagerness in addressing theses issues. This is perhaps best illustrated by the tone set by the Indian Prime Minister Dr. Manmohan Singh when he stated following the Ceremonial Reception accorded to the Bangladesh Prime Minister Begum Khaleda Zia at the Rastrapati Bhaban that "a strong and prosperous Bangladesh is in the interest of India and the region".

Prior to the visit, I mentioned to the press that we would like to avail "the train of opportunity." After returning from New Delhi, my feeling is that we have not missed that Train.

Ladies and Gentlemen,

The deepening bilateral engagement augurs well for the process of promoting regional cooperation.

The Thirteenth SAARC Summit witnessed a major leap forward for regional cooperation in South Asia. Its outcome was more focussed, shorn of rhetoric, action-oriented and time-bound, compared to the previous Summits. This demonstrated a desire to mutually benefit through collaborative regional action.

Public perception persists that SAARC has delivered little. Let me however highlight seven major accomplishments of the Dhaka Summit, to underline how SAARC is moving towards a paradigm shift:

First, SAARC's third decade (2006-2015) was declared as one of implementation. While its first two decades were devoted to drawing the member states to a common platform, shaping the instruments of regional cooperation and building institutions, the next decade seeks to expeditiously implement actions and to make SAARC truly a 'people's organization'. The leaders also decided to articulate a broad-based Vision for the Third Decade of SAARC. In the coming years, there will be an increased emphasis on regional orientation in all the activities and programmes and on forging partnership among all stakeholders.

Second, expansion of scope of SAARC. The process of meaningful cooperation in SAARC has generated interest in countries in the neighbourhood as well as among our development partners. So far, the SAARC Charter did not allow induction of States - either as new members or, as Observers. For the first time, Afghanistan is being included as a new member state. China and Japan have been accepted as observers. Last month, Republic of Korea and the US have also formally conveyed their interest to join SAARC. I am confident, the involvement of the major economies in SAARC will indeed usher in an era of concrete project-based cooperation in SAARC.

Third, priority to focus for the first time on hardcore economic areas of cooperation. The SAFTA Agreement has been operational, as of 1 January 2006, following the push given by the Summit. The first SAFTA Ministerial Council is being convened in Dhaka to address key issues, including the para-tariff and non-tariff barriers and harmonized standards. SAFTA is the first step towards the ultimate visions of a South Asian Economic Union (SAEU). Preparatory steps to that end are being visualized.

Fourth, cognizance of deeper challenges in the social sector, affecting the lives of the ordinary South Asian man, woman and child. The leaders emphatically reiterated their commitment to tackle endemic poverty in the region and decided to:

- Intensify national-level implementation of the SAARC Social Charter, with considerable focus on women and the girl child;

- Redouble efforts to address the 22 SAARC Development Goals and realize those within the SAARC Decade of Poverty Alleviation (2006 - 2015).

- Focus on development of human resources, by ensuring quality and spread of education and skills development;

- Effectively tackle the spread of health emergencies.

Fifth, South Asia's environmental challenges. The leaders decided to work towards a Regional Environment Treaty; and also declared 2007 as the Year of Green South Asia, to combat natural disasters through region-wide afforestation. A Framework for Disaster Management and Preparedness has already been worked out last February in Dhaka.

Sixth, an appropriate funding mechanism. SAARC leaders agreed to establish a broad based SAARC Development Fund (SDF), with three windows namely economic, social and infrastructure. The Social Window includes a SAARC Poverty Alleviation Fund. A blueprint of the SDF has already been prepared, having a corpus of over a billion dollars and involving innovative partnerships.

Seventh and finally, review of existing SAARC mechanisms and institutions responsible for implementing decisions. All aspects of functioning of the SAARC Secretariat, the SAARC Regional Centres, and various structures within the SAARC process and within the national governments are being evaluated. The goal is to ensure coordinated and effective implementation of the Summit decisions.

I should add that the SAARC Foreign Secretaries are meeting in Dhaka next week at their Fifth Special Session to consider all these areas. They will also finalise a Vision document, modalities for admitting Afghanistan, guidelines for associating Observes and Guests in SAARC and criterion for undertaking regional projects.

All these reflect the resolve among the South Asian leadership to move forward with determination. Concrete cooperation in some sectors is already underway to tap the potential. Once realized, these may strengthen further the bilateral relations between Bangladesh and India and between other countries in South Asia.

Ladies and Gentlemen,

All of us believe that this century is the coming of age of South Asia for more reasons than one. The issues that are most likely to dominate the world in the twenty-first century are sustainable development, poverty alleviation, environmental protection, limiting population growth, advancing democracy and human rights, combating terrorism and preventing the use of weapons of mass destruction. These issues converge in South Asia and the latter's fate directly impinges on the rest of the world as one-fifth of humanity lives here. South Asia is thus a vital test case. If no progress is made it will lead to a world of greater instability.

I believe that all the countries of South Asia do have a common stake and belief in the future of SAARC and in their South Asian identity. I got a sense of this during the last Summit. People have come to realize the significance of South Asia's huge emerging market, and its large and prospering middle class with good entrepreneurial, technical and scientific skills. In today's globalised world these assets have opened the way for extensive economic and commercial opportunities. In this context, SAARC retains a positive potential for economic cooperation and remains a basic harmonizing force for security and confidence building within the region and beyond.

I thank you, all.

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