Bangladesh's Engagement with ASEAN Retrospect and Prospect'

As part of its reorientcztion of economic and Joreign policy, Bangladesh adopted 'look east' policy to engage with the countries to the east (ASEAN+3) to increase trade nnd investment relations with them. Geographical proximi& with ASEAN entertains Bangladesh of a greater scope o f mutual cooperation with these cotlntries. These 13 nations have achieved ( I higher degree of economic development in the last three decades and experts believe flint these countries will continue to register higher economic growth in tlze next tllree decades as well. It is asstrmed that Bangladesh's engagement with East Asia will economically benefit the country and enhance mutual cooperation. Seenzingly, tlie 'look emt'policy has made a boom in tlie imports of Bangladesh porn tile ASEAN cotmtries. Btit its exports to these countries have remained unchanged. Banglndesh needs to divers& its export items ensuring better quality pladticts to increase exports to ASEAN. The country should seek interim co/zcessionaiy trade arrangement witk ASEANfor reducing the existing huge trade gaps that at present favour the ASEAN countries. On the other hand, integration witk the ASEAN economies sl~ould be a long-term policy aim of Bangladesh. Bangladesh shares common historical and culttiral heritage with tlze ASEAN nations. Its overall economic and social indicators are not bad compared to those of the new members of ASEAN. Bangladesh's economy is ~zlmost equal to the size of' the combined economies o f t h e new members of ASEAN and so does tlze size of its poptilation. Moreover; the countly links LIP ASEAN with a comparatively vast market of South Asia. Therefore, ASEAN sho~lld consider some collaborative arrangements with Bangladesh with a view to making a future bridge between the two historical sub-regions of Southeast Asia anti South Asia.


.I Background
The demise of the Cold War followed by the emergence of the World Trade Organization (WTO) had oriented many countries towards a liberal economic policy in the early ninet.ies of the last century. Collapse of the communist bloc opened up t6e avenue for ' This article is a shortened form of an MA thesis report of the writer. The thesis report was submitted to Chulalongkom University, Bangkok, Thailand for his MA degree in Southeast Asian Studies. the spread of capitalismmarket driven economy. The WTO provided the forum for multilateral negotiations and facilitated liberalization of world trade. In this changed international relations Bangladesh also reoriented its economic interests and quickened the opening up of her economy to the external world. During the early years of independence Bangladesh followed a socialist form of economy. Its foreign and economic policies were dictated by aid dependency. The country had to follow a balanced relationship between the western world and the Islamic world. In response to the fast changing global scenario, Bangladesh also readjusted and adapted its priorities over the last decade. Very recently the country has put emphasis on engaging economically with East Asian countries in general and ASEAN in particular. To this effect, Bangladesh has adopted a "Look East" policy, in terms of greater cooperation in trade, investment, technology and employment in pursuance of her rapid economic development. This "Look East" policy is defined, in the words of the Foreign Minister of Bangladesh, as "a focused diversification of ... relations with countries in the East and Southeast Asia . . . [to] build partnerships for development and human security"' . He described this policy as having three componentspolitical, economic and cultural. Politically it signifies cooperation for international peace and security. Economically it denotes tapping the potentials of greater cooperation in trade, investment, and technology. Culturally it encourages greater interactions among the people of this region through mutual exchange programmes in various fields.
The policy makers explain this new approach to economic relations as a result of the global move towards a market-oriented economy. Some leading scholars and analysts in Bangladesh partially attribute the new policy approach to the slow progress of the South Asian Association for Regional Cooperation (SAARC) compared to ASEAN 3 . Bangladesh is a leading founder member of SAARC. SAARC was formed in 1985 and since then has always been a M. Morshed Khan, Foreign Minister of Bangladesh, in an address on "The Look East Policy of the Government of Bangladesh" at the Institute of Defence and Strategic Studies (IDSS), Singapore, 12 November 2003. For details please visit http://www.mofabd. org/statements/fm I4.html victim of endless squabbles between India and Pakistan over Kashmir. Bangladesh is also fixstrated with the Indian dominance in South Asian regional politics. India had made a series of accusations against Bangladesh that the country provides shelter to the secessionist insurgents from northeastern states of India, which have angered the present government of Bangladesh. With other bilateral problems Bangladesh also incurs huge trade deficits of over US$ lbillion against India. But the Government of Bangladesh denies any link of 'look east' policy with the India issue. Geographically Bangladesh enjoys a strategic position between South Asia and Southeast Asia. This country lies to the eastern periphery of the South Asian sub-continent, but it links up with the Southeast Asian countries through a common border with Myanmar. The country also shares a common geographical, historical and cultural heritage with the Southeast Asian countries. Bangladeshi policy makers believe that strategic and geographic proximity of Bangladesh with Southeast Asia offers each other comparative advantages that can be tapped for mutual benefits. Construction of modern' railroads and highways connecting Bangladesh with Southeast Asia through Myanmar will help utilize the natural and human resource endowments of both South and Southeast Asia. Owing to these facts, Bangladesh seeks greater engagement with ASEAN. To this end Bangladesh wanted membership in ASEAN Regional Forum (ARF) and became a participant (member) of the ARF on 28 July 2006 during its ministerial meeting held in Kuala Lumpur. Thrust of the 'look east' policy is, therefore, to engage with the East and Southeast Asia to harness the benefits of trade and investment.  2004. It seems that since then trade and investment cooperation has increased between Bangladesh and ASEAN countries. Establishment of air links between Chittagong and Chiang Mai signifies the pace of increasing cooperation. This study is an effort to examine the basis and trends of Bangladesh's economic engagement with the ASEAN countries. In doing so, the study addresses only the economic component of Bangladesh's 'look east' policy. It focuses on the trend of the commodities that Bangladesh imports from the present ASEAN 10 countries and also the commodities that the country exports to these countries. 7 9 through Myanmar to Thailand and other resourceful ASEAN countries for its products. ASEAN has appeared as a successful regional grouping among the developing countries. Success of the 'look east' policy will depend on how far Bangladesh can appeal to ASEAN countries as a destination for investment or joint venture scheme. The areas of investment will have to be precisely identified and promoted tenaciously.
An analysis of the trend of Bangladesh's trade and investment relations with ASEAN will help evaluate the thrust of Bangladesh's 'Look East' policy. Such a study has not only an academic value but also has practical implications for future action. No study has been found in the available literature on the economic dimension of Bangladesh's engagement with ASEAN. It is expected that the study will contribute to the scholarly and political discourse on Bangladesh's engagement with Southeast Asia and provide incentives to the f~~t u r e researchers of the field of regional economic cooperation.

Objectives
In broad terms this study aims at examining the trend of Bangladesh's engagement with the ASEAN countries in terms of trade and investment. Specific objectives of the study are to -I. Examine the basis of Bangladesh's initiatives to engage with ASEAN; and 11. Explore the prospect of cooperation between Bangladesh and ASEAN.

Scope of the Study
This study focuses mainly on the economic aspect of Bangladesh's engagement with the ASEAN countries. Economic engagement here implies trade and investment in the past and present from both sides. Trade data date back to the 199011991 period and move on to the 200312004 period. For an analysis of trade and investment relations between Bangladesh and ASEAN, an analysis of trade and investment policies of these countries was necessary. ASEAN countries refer to the present 10 members of the organization, namely Brunei, Cambodia, Indonesia, Peoples Democratic Republic of Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Thereby, the political and cultural dimensions of the "Look East" policy have not been addressed here in details. However, the historical background of the ASEAN countries as well as Bangladesh has essentially come under the purview of this study. In addition, other countries of the East beyond ASEAN are outside the purview of the research.

Methodology
This is a qualitative study. To attain the objectives, trade policies of Bangladesh and ASEAN countries have been analysed in a descriptive way. Data were colleted from secondary sources. Data on Bangladesh's political relations with ASEAN have been collected from the available literature on the subject. These include books, journal articles, newspaper reports, Internet etc. In addition, information has been collected from the Southeast Asia Division of the Ministry of Foreign Affairs of the Government of Bangladesh during my stay in Bangladesh from May 20, 2005 to July 6, 2005. For an analysis of the trade and investment policies of the said countries related books and documents have been consulted. In many cases the Internet has been an essential source for collecting information on the trade policies. The WTO trade policy review reports on the individual countries covered by this study have been particularly important for trade policy analysis.
To understand the trend of Bangladesh's export products to the ASEAN countries and its import products from the same, exportimport data have been collected from the Bangladesh Bank (the central bank of Bangladesh) during the period mentioned above. The Bangladesh Bank annually publishes two books compiling its export-import data. These two books are: 'Annual Import Payments', and 'Annual Export Receipts'. These two publications compile Bangladesh's export and import data using 97 chapters of the international Harmonized System (HS) of commodity coding and commodity descriptions. Therefore, the HS chapter-wise 8 1 volume of imports from the present ASEAN 10 countries since 199011 99 1 up to the fiscal year 200312004 has been collected from the 'Annual Import Payments' stored in the Bangladesh Bank Library. Similarly, the HS chapter-wise export volume to the same countries during the aforesaid period has been collected from the 'Annual Export Receipts' stored in the same place. Investment related information has been collected from the Board of Investment of Bangladesh.
Export and import data have been processed through the Microsoft Excel programme of the computer. Statistical Package for Social Sciences (SPSS) programme has been used to run simple statistical analysis and for making graphs and charts. The export-import documents in Bangladesh are arranged in accordance with a Bangladeshi fiscal year, which begins on 1 st July and ends on 30th June. As the value of the export-import transactions in the said documents is in the Bangladeshi currency Taka, necessarily data processing has been conducted using this local currency. The value of the export-import commodities for a particular country for a particular period has been converted into US dollar using the total value of export/import for the particular period that is given in both currencies i.e., Bangladeshi Talca and US dollar.
The study was intended to interview relevant policy makers and analysts during the data collection period in Bangladesh. But because of some limitations (see section 1.8 below) this could not happen. However, content analysis has been adopted instead. The opinions and views of the prospective policy makers and analysts that appeared in the newspapers or other electronic media have been picked up for analysis.

Symbols:
..: means that data are not available or that aggregates cannot be calculated because of missing data in the years shown. 0 or 0.0: means zero or less than half the unit shown.
1: in dates, as in 199019 1, means that the period of time, usually 12 months, straddles two calendar years and refers to a crop year, a survey year, or a fiscal year. $: means US dollars.

Review of Literature
Affordable sources of literature do not provide any information of existence of any study on or related to the subject of this study. However, sporadic newspaper reports and analysts' opinion relating to the topic of the study have appeared in the consulted sources. Some other kinds of study not directly related to the present research have been found. The faculty members of the Bangladesh Institute of International and Strategic Studies (BIISS) conducted a research in mid-1 987 whose outcome was published by the institute in the form of a book named "ASEAN Experiences of Regional and Inter-regional Cooperation: Relevance for SAARC" in 1988. This study focuses on the dynamics of ASEAN as an organization and also the dynamics of SAARC and the relevance of ASEAN experiences for SAARC. It seeks to find out the possibilities of cooperation between ASEAN and SAARC at the organizational level. Relevance for Sub-Regional Co-operation in South Asia during October -December 1997 at the ISEAS. These two studies focus respectively on conflicts management and sub-regional cooperation within ASEAN. A third book was published by the BIISS titled Bangladesh-Southeast Asia Relations: Some Insights in 2002. This recent book edited by Shaheen Afroze is a compilation of eight articles written by eight scholars: seven Bangladeshi and one Thai. None of them deals with economic engagement of Bangladesh with the Southeast Asian countries.

Limitations
This study has many limitations. Firstly, available time and resources were not sufficient for such a study. However, endeavour has been sought to use the limited time and resources in an efficient way to bring the best possible result. Secondly, intended interviews could not take place because of the shortage of time. The data collection period in Bangladesh was not enough to make appointments with the intended analysts and policy-makers. However, abortive endeavour was made to this effect. In addition to that, June is the last month of a Bangladeshi fiscal year. Naturally officials keep themselves busy for closing the fiscal year in June. This was another reason for not getting appointments with the targeted persons. Thirdly, the WTO trade policy review reports on the individual countries covered by this study are based on different years. So there remains a time inconsistency in the trade policy analysis of the studied countries.

0 Organization of the Article
The next section puts Bangladesh and ASEAN in their historical perspectives. It will be seen here that the people of these countries share the same history and cultural heritage. Bangladesh between South Asia and Southeast Asia has been a connecting land. Similarities between the people outweigh the dissimilarities. After the decolonisation period, these countries faced the same problem of nation building. In this process cooperation among them was necessary. Memberships to different sub-regional, regional and international organizations provided forums to them for perpetuating their cooperation. This section also focuses on the recent developments in their mutual cooperation. Lastly it lists some statistics pertaining to their economy, geography and developments.
The third section presents the findings of the study. It begins with an overall trade performance by Bangladesh and ASEAN. A summary of trade performances from the fiscal year 1990191 to the fiscal year 2003104 is presented here. Then the chapter moves on to discuss Bangladesh's trade relations with the ASEAN 10 countries separately. Tables and graphs have been used to analyse trade relations from different perspectives. Lastly, the chapter ends with a brief discussion on investment relations between Bangladesh and ASEAN. Forth section concludes the report with a summary of the findings and forwards some recommendations to the concerned authorities.
Appendices and bibliography have been attached to the end of the article. Appendix-A shows the HS commodity sections, commodity chapters, and chapter descriptions. The bibliography includes some of the books, articles and documents that have been read in the previous two semesters of my study although some of them do not directly help the writing of this report.

Bangladesh and ASEAN in Historical Perspective
.

Bangladesh in the Historical Backdrop
The territory today known as 'Bangladesh' was under British rule as a part of British India colony from 1757 to 1947. When the British withdrew from the Indian subcontinent, Bangladesh became a wing of Pakistan in the name of 'East Pakistan'. Bangladesh became an independent country in the world map in 1971 through a nine-month long devastating liberation war. The 190 years of British occupation and another 24 years of Pakistani rule virtually exploited the resources of the country. The British colonial masters and the Pakistani rulers did a little for economic emancipation of the people of this land. Rather during the 1971 war of liberation all infrastructures of the country were damaged. After independence, the people of this land worked hard to build the infrastructures and are trying to come out of poverty. In pursuance of rapid economic development, the country tried to consolidate its position in the international community through its diverse foreign and economic policies during different regimes of the country's administration. The first regime of Bangladesh followed a socialist mode of production through nationalizing all enterprises of the land and was tilted to the Soviet bloc during the hot period of the Cold War politics. The first democratic regime was overthrown by a section of the Bangladesh Army in August 1975. Since then the country had been under military and autocratic regimes until 1990. A massive uprising in 1990 unseated the autocratic regime of Bangladesh who came from the military. Since then de~ocratic rule has been institutionalised in the country if not in the literal meaning of the word. Democratic institutions of the country are getting strengthened gradually. The country adopted a policy of deregulation and privatisation of the state owned enterprises (SOEs) during the late 1970s and early 1980s. In the early 1990s these deregulation and privatisation processes gathered momentum following the reintroduction of democratic rules in Bangladesh. Now Bangladesh has fully opened up its market to the external world. In pursuit of free market economy it offers all possible incentives to foreign investors to attract foreign direct investment (FDI).
Bangladesh, from the position of a war-ravaged country, has progressed considerably within the past 33 years of independence. The country has by this time seen many success stories. Bangladesh has overwhelmingly increased its food grain production. In last few years its food production was able to feed its nearly 140 million populations. But natural disasters often destroy its capability to attain food self-sufficiency. There has been a considerable reduction in the growth rate of population in Bangladesh. Improvements in some social sectors like healthcare and sanitation, life expectancy at birth, infant mortality rate, literacy rate, GDP growth have surpassed many developing countries. For example infant mortality rate and under-five mortality rate in every 1000 in 1980 were 129 and 205 respectively. These two rates are today 51 (in 2001) and 69 (in 2002). Life expectancy at birth in 1980 was 49 years which is today over 62 years (in 2003). Literacy rate, access to improved water source and access to improved sanitation facilities have increased considerably. There has been an average annual GDF grn-h of about 5% over the last 12 years in Bangladesh. Diver F a n u f a c t u r e d consumer goods and services overwhelmingly replacing traditional agricultural products in the export basket. The development of oral rehydration therapy that saves millions of lives across the world is a contribution of Bangladesh. Micro-credit a roach in reducing poverty, which is now been implemented across t e world, is an invention of Bangladesh.

ASEAN in the Historical Backdrop
The Southeast Asian countries share the same history of colonization, as do the South Asian countries. All countries of Southeast Asia were colonized by the European powers by the 1800s except Siam. Indonesia was under the Dutch colonial rule for more than three centuries. The Japanese occupation of Southeast Asia during the Second World War ended Indonesia's colonial rule. Republican forces led by Sukarno proclaimed independence of Indonesia on 17 August 1945. But the country formally got The internal conflicts in Southeast Asia soon were converted into cooperation. At the initial stage of their independence, the stimulus for cooperation among the Southeast Asian nations came from outside. Because of a fear from the possible effect of the domino theory, in an abortive effort the Philippines, Thailand and Malaya formed the Association of South East Asia (ASA) in 1961 to organize themselves. But this organization could not last long. In the mean time the region had become a hotly contested Cold War zone. Even before ASA was formed East-West confrontation led to the formation of the South-East Asia Treaty Organization (SEATO) in 1954. While the SEAT0 was a military organization, ASA was a political and economic cooperation organization. In addition, the SEAT0 was not purely a Southeast Asian organization. Some of its memberships were from beyond the territory of Southeast Asia. Continued cooperation a m o n v h e a s t Asian nations resulted into the creation of the ~% % a t i o n~f Southeast Asian Nations (ASEAN) in 1967 with Indonesia, Malaysia, Singapore, the __ Philippines and Thailand as its founding members. Though the initial stimulus to associate came from the external sources, ASEAN leaders soon used their mutual cooperation as a tool for economic development. Today ASEAN has appeared as the most successful regional grouping among the developing countries not only in the management of regional disputes but more importantly as a successful regional economic bloc. ASEAN has witnessed rapid economic development in the last decade of the last century. The ASEAN countries have achieved high GDP growth in the decade from 1990-2001 despite the East Asian financial crisis. ASEAN has increased its intra-bloc trade considerably. In 1990 intra-ASEAN exports and intra-ASEAN imports were 20.1% of the total and 16.2% of the total respectively. In 2001 they increased to . 23.5% of the total and 22.8% of the total respectively.

Bangladesh versus Southeast Asia
With the enlargement of ASEAN, Bangladesh became a bordering nation of the organization. Bangladesh shares 288-kilometre long common border with Myanmar. Thus, Bangladesh links up the South Asian Association for Regional Cooperation (SAARC) with the ASEAN. The bilateral relations of Bangladesh with the ASEAN countries are more cordial and friendly than that with the SAARC countries. Bangladesh has some outstanding problems with its two giant counterparts in SAARC: India and Pakistan. It has many problems with its immediate big neighbour India, which are unresolved for years. Among them are: water sharing of 54 common rivers, huge trade deficit in favour of India, push-in and push-back of Bengali-speaking people into and outside the territory of Bangladesh, unresolved border disputes, accusations of harbouring separatist guerrillas from both sides and many more. Bangladesh has two main unresolved problems with its former colonial master Pakistan. They are: sharing of common resources Compared to SAARC countries Bangladesh has no bilateral problems with the ASEAN countries except the Rohingya refugee problem with Myanmar. In 1991-92 some 250,000 Muslim Rohingyas minority from Burma's Arakan State fled across the border into Bangladesh because of discrimination, violence and the imposition of forced labour practices by Burmese authorities. Most of these refugees returned between 1993 and 1997 under a repatriation program arranged through the auspices of the United Nations High Commissioner for Refugees (UNHCR). Repatriation of the remaining 22,000 Rohingyas in the refugee camps in Bangladesh is in the process. A similar exodus took place in 1978 when around 250,000 Rohingya were forcibly pushed into the territory of Bangladesh by the authority in Myanmar. Bangladesh-Myanmar bilateral relations, however, is not affected by it. The political relations between Bangladesh and Myanmar have always been friendly and cordial. Myanmar recognized Bangladesh as an independent country within a month of achieving independence from Pakistan. Since then the two countries have enjoyed good relations of peaceful coexistence.
Bangladesh's relations with the other countries of ASEAN beyond Myanmar have been cordial and friendly too. Bangladesh shares many common values and cultural similarities with these countries. In the dialects of Thailand many Sanskrit and Bengali words are used. It indicates that hundreds of years ago people of this region would intermingle for religious and business purposes. Buddhism spread to Southeast Asia from South Asia through the eastef'n part of South Asia now constituting Bangladesh. In fact, Goutom Buddha was born in Orissa (now a state in India), which was hundreds of years ago, a part of Greater Bengal. The newly formed sub-regional grouping, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), has been a forum where Bangladesh regularly interacts with two members of ASEAN.-Myanmar and Thailandwho are members of the group.
Bangladesh shares common Islamic heritage and values with the Muslim majority countries of Southeast Asia, namely Indonesia, Malaysia and Brunei. All are members of the Organization of Islamic Conference (OIC) and the Non-Aligned Movement (NAM). Malaysia, Brunei and Singapore have employed a large number of Bangladeshi workers and white-collar professionals. These Bangladeshi workers and professionals are contributing to the economic development of these countries. Singapore has been Bangladesh's the largest trading partner in Southeast Asia. Interactions with the other members of ASEAN have not flourished significantly though there remains opportunity in this regard. Bangladesh-ASEAN potentialities have never been tapped to the fullest.
The Bangladesh Institute of International and Strategic ~k d i e s (BIISS) has been a pioneer think tank in Bangladesh, which has conducted a few studies on South and Southeast Asian affairs. Little exchange programmes have taken place between the BIISS and the similar institutions of Southeast Asia. Dialogue series were conducted with the Jakarta-based Centre for Strategic and International Studies and Kuala Lumpur-based Institute of Strategic and International Studies (ISIS). The BIISS had concluded an agreement with the Singapore-based Institute of Southeast Asian Studies (ISEAS) and the Ford Foundation in 1996. Under this agreement a three year-programme called Research Fellowship in Bangladesh-Southeast Asian Relations was arranged which allowed ten scholars from Bangladesh to conduct research at the ISEAS with funding from the Ford Foundation. Under this programme four scholars from the Southeast Asian countries had visited Bangladesh. Except this programme, no other exchange programme has been known from the available literature.

Recent Developments in Bangladesh-ASEAN Relations
Bangladesh is committed to engagement with Southeast Asia. This commitment is reflected on its effortyto form BIMSTEC in 1997. BIMSTEC has been a linkage between ASEAN and SAARC. Bangladesh's desperateness to engage with ASEAN can be 9 1 understood from the intensity of the official visits made by the learership of Bangladesh to the ASEAN countries and also visits made by the ASEAN leaderships to Bangladesh since the adoption of the 'look east' policy by the Government of Bangladesh. Table-2.2 shows the visits made by the major ASEAN leaderships to Bangladesh. From July 2002 to June 2004, six Heads of StateIHeads of Government from Myanmar, Thailand, Vietnam, Singapore and Indonesia had paid official visits to Bangladesh. It is an indication of more than normal interactions between Bangladesh and ASEAN.
From December 2002 to June 2005 the present Prime Minister of Bangladesh had paid official visits to Myanmar, Thailand, Vietnam, Malaysia, Singapore, Indonesia and Brunei. During these mutual visits some agreements and memorandum of understandings (MOU) have been concluded covering a wide range of issues. These recent visits and agreements have cemented the bonds between Bangladesh and the ASEAN countries and have accelerated cooperation.
As a result of the increased cooperation between Bangladesh and ASEAN countries fuelled by the 'look east' policy, Myanmar has taken up steps for rapid repatriation of the remaining 22,000 Rohingya refugees now living in the refugee camps in Bangladesh. A memorandum of understanding (MOU) for establishing direct road link between Bangladesh and Myanmar was signed in April 2004 between two countries. Establishment of direct road link between Bangladesh and Myanmar will open up possibilities to physically connect Bangladesh with other ASEAN countries. Following the visits Thailand has granted duty free access to 229 categories of Bangladeshi products to the Thai market while Indonesia has given such facility to 23 Bangladeshi products to the Indonesian market. This duty free access facility to ASEAN markets is essential for Bangladesh because Bangladesh incurs a huge trade deficit with the ASEAN countries. Malaysia and Brunei have withdrawn their moratorium imposed on imports of manpower from Bangladesh. These developments can be seen as results yielded by the recent initiatives taken by Bangladesh.

Bangladesh-ASEAN: Overall Trade Performance
Bangladesh opened up its economy rapidly and extensively, which is reflected in its export-import relations with the ASEAN 10 countries. The data on mutual trade dating back to 1990191 up to 2003104 show that Bangladesh's imports from the ASEAN countrkes-progressively went up over the years.  1990191 1991192 1992193 1993194 1994195 1995196 1996197 1997198 1998199 1999100 2000101 2001102 2002103 2003104 Year

Bangladesh-Brunei Trade Relations
Bangladesh-Brunei trade balance has always been in favour of Brunei. Table 3.3 shows a comparative picture of Bangladesh's imports fkom Brunei and its exports to the same. (In million US$) From the fiscal year 1990/91 to 1 9 9 4 1 9 5 , B a n g l a d The most traded commodity items between Bangladesh and Brunei were textile and textile articles (commodity group code 'K' in our research, see appendix-A). Fourteen items of products are included in this commodity group. This commodity group accounted for 29 per cent of the total imports of Bangladesh during the study period. Bangladesh imported mostly cotton (HS code '52') and man-made staple fibres (HS code '55') included in this commodity group, wl~ich constituted the bulk of total imports from Brunei. These two items formed 12 per cent and 10 per cent respectively of the total imports in the said period. The commodity group 'P' (machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers; and parts and accessories of such articles) made up 25 per cent of the total imports of Bangladesh from Brunei in the same period of which nuclear reactors, boilers, machinery and mechanical appliances; parts thereof alone constituted 24 per cent.
Bangladesh exported other vegetable textile fibres, paper yarn and woven fabrics of paper yam (HS commodity code '53') to Brunei every year, which constituted the bulk of the total (87 per cent of the total exports to Brunei in the study period). The other most traded items of this commodity group were articles of apparels and clothing accessories, knitted or crocheted (HS commodity code '61'); and articles of apparel and clothing, accessories, not knitted or crocheted (commodity code '62'). The next most exported commodity item was raw hides and skins (other than furskins), and leather (HS commodity code '41'), which constituted 7 per cent of the total exports to Brunei in the study period.

Bangladesh-Cambodia Trade Relations
In terms of volume of trade, Cambodia is the last number country in the list of partners in Southeast Asia. A total of US$ 4.93 million trade took place between Bangladesh and Cambodia during the period of our study. Bangladesh started imports from Cambodia since the fiscal year 1992193. But exports to Cambodia have been sporadic (see table 3.2). The first exports t o -k place in the fiscal year 1996197; -imports from Cambodia had begun. The second exports occurred in 199912000. There was a gap of two years between the first and the second exports by Bangladesh to Cambodia. Again the following year there was no export to Cambodia, while imports from the country by Bangladesh continued unintem~ptedly. However, since the fiscal year 2001102 exports to Cambodia seems to be stable. However, balance of trade is in favour of Cambodia. From the fiscal year 1990191 to the fiscal year 1994195, Bangladesh imported commodities from Cambodia worth 011 the average US$ 0.12 million, while Cambodia's import from Bangladesh was nil during this period. During the second five years of our studied period, Bangladesh fetched an average trade deficit of US$ 0.51 million per year (see table 3.4). But during the last four years of our studied period Bangladesh earned a trade surplus with Cambodia of a value of US$ 0.12 million per year.
(In million US$) Y e t , B a n g l a d e s h had an overall trade deficit of US$ 3.49 million in total in the fourteen years studied period of this r e s e a r c h . During the studied period, Bangladesh imported mostly cotton (HScode '52') from Cambodia, which constituted 39 per cent of the total. The second important items were salt, sulpher, earth and stone; plastic materials; lime and cement (HS code '25'). This commodity group made up 10 per cent of the total imports of Bangladesh from Cambodia in the same period. Silk (HS code '50') was third in rank in the import items while special oven fabrics; tufted textile fabrics; lace; tapestries; trimming; embroidery (HS code '58') were fourth in volume. In the export baskets of Bangladesh to Cambodia, raw hides and skins (other than furskins) and leather (HS code '41') was on the top of the list. These category products constituted 73 per cent of the total exports to Cambodia.
The second important items were articles of apparels and clothing accessories, knitted or crocheted (HS code '61 I), which made up 6 per cent of the total. The third item was cotton, which formed 5 per cent of the total.

Bangladesh-Indonesia Trade Relations
(In million US$) vegetables textile fibres; paper yam and woven fabrics of paper yam (HS code '53'). These items constituted 50 per cent of the total exports to Indonesia by Bangladesh. The second and third exported items made up 31 per cent and 6 per cent respectively of the total. These two commodity groups are '63' (other made up textile articles; sets; worn clothing and worn textile articles; rags) and '41' (raw hides and skins (other than furskins) and leather) respectively. Only three commodity groups formed 87 per cent of the total exports of Bangladesh to .Indonesia. Bangladesh imports from Laos mostly cotton, machinery and mechanical appliances, and knitted or crocheted fabrics. From the fiscal year 1990191 to the fiscal year 2003104, cotton made up 41 per cent of the total imports from Laos. Nuclear reactors, boilers, machinery and mechanical appliances; and parts thereof (HS code '83') constituted 11 per cent of the total imports. Knitted or crocheted fabrics (HS code '60') occupied the third position in the imports basket from Laos. Man-made staple fibres (HS code '55') and impregnated coated, covered or laminated textile fabrics; textile articles of kind suitable for industrial use (HS code '59') have taken the fourth and fifth positions respectively with a contribution of 6 per cent each in the imports basket. Another 40 commodity groups fill the rest of the imports basket with 28 per cent contribution. On the other hand, Bangladesh exported only 7 commodity groups out of 97. Raw hides and skins (other than furskins) and leather (HS code '41') formed 48 per cent of the total exports of Bangladesh to Laos. Commodity code '53' (other vegetable textile fibres; paper yam and woven fabrics of paper yarn) was second in rank, which constituted 42 per cent of the total. Articles of apparels and clothing, accessories, not knitted or crocheted (HS code '62'), and fish and crustaceans, molluscs and other aquatic invertebrates (HS code '3') made up 4 per cent and 3 per cent respectively of the total exports to Laos. from Malaysia during 1990191 -2003104. Plastics and articles thereof (HS code '39') and mineral fuels, mineral oils and products of their distillation, bituminous substances; mineral waxes (HS code '27') were second and third in the import items' list from the top. They contributed 8 per cent each to the imports basket. Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (HS code '83'), and salt; sulphur; earths and stone; plastering materials; lime and cement (HS code '25') were fourth and fifth in rank with 6 per cent and 5 per cent contributions respectively.

Bangladesh's Trade with Malaysia
On the other hand, out of 97 commodity groups, Bangladesh's exports to Malaysia belonged to 53 groups. The main export items in the exports basket of Bangladesh to Malaysia were fish and crustaceans, molluscs and other aquatic invertebrates (HS code '37, which formed 28 per cent of the total. The second important commodity group was mineral fuels, mineral oils and products of their distillation bituminous substances; mineral waxes (HS code '27'). The share of these commodities in the exports basket is 14 per

1990191-2003104
Banglaclesl7 Journal of Public Adirzirzistr.ation cent. But exports of these commodities of the group do not happen every year. They had appeared sporadically. Out of 14 years of our studied period, they were exported only 7 years. The third important items that were exported 13 years out of the 14 years covered by our study, were other made up textile articles; sets; worn clothing and worn textile articles; rags (HS code '63') with 8 per cent contribution in the exports basket: Other two commodity groups also had 8 per cent share each in the exports but they are exported sporadically. For example, fertilizers (HS code '3 1') had a share of 8 per cent but were exported only 4 years out of 14. Yet, fertilizers had the fourth position in the total exports to Malaysia. Man-made staple fibres (HS code '55') also shared 8 per cent in the total exports and had its place in the fifth position. But they were exported 8 years out of 14. The commodities belonging to code '53' (other vegetable textile fibres; paper yarn and woven fabrics of paper yearn) with 7 per cent contribution to the total exports ranked the sixth position. But these commodities were exported every year.

Bangladesh-Myanmar Trade Relations
For Bangladesh, Myanmar is an important country in ASEAN. Because Myanmar is the-country through which Bangladesh physically connects with ASEANJt is not only that, Myanmar is also important because &ngladesh shares its boundary with two countries and Myanmar is one of them. But Bangladesh's trade with Myanmar has not flourished up to the potentials. Bangladesh's imports from Myanmar comprise 32 commodity groups out of 97. The volume of trade is also meagre keeping in mind its geographical position. With a total trade value of US$ 198.74 million, Myanmar is the fifth largest trading partner of Bangladesh in ASEAN. -.
Bangladesh imported mainly wood and articles of wood, wood charcoal (HS code '44') from Myanmar unintemptedly during the 14 y e a r s c o u r study. This commodity group filled 53 per cent of the basket of the total imports form Myanmar. The second important commodity group was cereals (code '10'). The third important commodities were edible vegetables and certain roots and tubers (code '7'). These two commodity groups formed 29 per cent and 9 per cent respectively. They also were imported uninterruptedly almost every year. On the other hand, 31 commodity groups had been found in the exports basket of Bangladesh to Myanmar. Fertilizers (code '31') had been found to top the list of exports to Myanmar filling 54 per cent of the exports basket. But this was not a fi-equently exported item. Fertilizers were exported only 3 years out of 14 of our studied period. Pharmaceutical products formed the second largest volume in the exports list. These products had a share of 14 per cent and were frequently exported to Myanmar. Articles of iron and steel (code '72'), and other made up textile articles; sets; worn clothing and worn textile articles; rags (code '63') were third and fourth largest items respectively with each 9 per cent contributing to the total exports. Other vegetables textile fibres; paper yarn and woven fabrics of paper yam (code '53') were listed in the fifth position with 4 per cent contribution to the total exports to Myanmar.

Bangladesh-Philippines Trade Relations
The Philippines was the seventh largest trading partner of Bangladesh in ASEAN in terms of volume of trade. A total of US$ 109.4 million were traded during our studied period. Like Myanmar, initially Bangladesh had a trade surplus with the Philippines. During the first five years of our studied period, Bangladesh had a trade surplus of US$2.66 million on the average every year ( In the imports basket of Bangladesh from the Philippines' 60 commodity groups had been found out of 97. In terms of value of the imported items salt; sulphur; earth and stone; plastering materials; lime and cement (HS code '25') had been found to top the list. But these products had been imported since the fiscal year 2000101. Still their contribution to the total imports is 48 per cent. Oil seeds and oleaginous fruits miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder (code '12') had been found in the second position with 7 per cent contribution to the total imports. Man-made staple fibres (code '557, and iron and steel (code '72') were in the third and fourth positions respectively with 6 per cent contribution by each product group to the total imports. Fertilizers (code '31'), and nuclear reactors, boilers, mechanical appliances; parts thereof (code '83') had fifth and sixth positions respectively with 5 per cent contribution by each commodity group to the total imports from the Philippines. But still these products occupied the second position in terms of value with a contribution of 23 per cent in the exports basket to the Philippines. Raw hides and skins (other than furskins) and leather (code '41') had been exported to the Philippines uninterruptedly during the studied period. This product group with the third position formed 12 per cent of the total exports to the Philippines. Other vegetable textile fibres; paper yarn and woven fabrics of paper yam (code '53') contributed 6 per cent to the total exports to the Philippines and were placed in the fourth position. Bangladesh also exported iron and steel (code '72'), which made up 4 per cent of the total and had the fifth place in the exports list.

Bangladesh-Singapore Trade Relations
Singapore is the largest trading partner of Bangladesh in ASEAN. Bangladesh and Singapore is the largest in ASEAN, so is the trade gap between the two countries. Imports by Bangladesh from Singapore are on the ever increase. Table 3.10 shows a summary of the trade that took place between Bangladesh and Singapore in the studied period. Bangladesh imported a wide range of commodities from Singapore during the studied period. Mineral fuels, mineral oils and products of their distillation bituminous substances; mineral waxes (HS code '27') constituted the largest part of the imports basket. This commodity group made up 38 per cent of the total. Animal or vegetable fats and oils and cleavage products; prepared edible fats; animal or vegetable waxes (code '15') contributed 11 per cent of the total imports with the position of second. Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (code '83') were in the third position and made up 9 per cent of the total imports. Plastics and articles thereof (code '39') had the fourth position and contributed 5 per cent of the total imports. Ships, boats and floating structures (code '88') had the fifth position with a contribution of 4 per cent. Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles (code '84') had the sixth position and contributed 3 per cent of the total imports from Singapore.
On the other hand, Bangladesh exported 78 commodity groups to Singapore out of 97. As in the case of imports from Singapore, mineral fuels, mineral oils and products of their distillation bituminous substances; mineral waxes (HS code '27') took the first place in the case of exports to Singapore as well. This commodity group made up 40 per cent of the total exports to Singapore. Other vegetables textile fibres; paper yarns and woven fabrics of paper yam (code '53') were the second in rank and contributed 14 per cent of the total exports. Fish and crustaceans, mollusks and other aquatic invertebrates (code '3') were the third mostly exported items which formed 10 per cent of the total exports. Knitted or crocheted fabrics (code '60') were the fourth largest export items being 6 per cent of the total exports. Raw hides and skins (other than furskins) and leather (code '41') were the fifth largest commodities and were 5 per cent of the total exports from 1990191 to 2003104.

Bangladesh-Thailand Trade Relations
Thailand is the third largest trading partner of Bangladesh in Southeast Asia. From 1990191 to 2003104 a total of US$ 1706.77 million were traded between Bangladesh and Thailand. As usual, a huge trade gap existed between the two countries in favour of Thailand. Table 3.11 summaries trade data on Bangladesh and T h a i l a n d . from T h a i l a n d . B u t Bangladesh's a v e r a g e exports to Thailand during this period were US$ 8.37 million per year. So there existed a trade deficit against Bangladesh of a value . of US$ 33.65 million. Figure 3.7 illustrates Bangladesh's trade deficits against Thailand.

Awrage
Awrage Total 1990191-1995196-2000101-1990191-1994195 1999100 2003104  16 per cent of the total imports form Thailand. Also salt; sulphur; earths and stone; plastering materials; lime and cement (code '25') made up 16 per cent of the total imports but were ranked the second. Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (code '83'), and man-made staple fibres (code '55') were ranked as the third and the fourth commodity groups with 10 per cent and 9 per cent contribution to the total imports. Cotton (code '52'), and sugars and sugar confectionary (code '17') were ranked in the fifth and sixth positions and contributed 7 per cent and 5 per cent of the total imports respectively.
On the exports side, Bangladesh exported 41 commodity groups out of 97. Fish and crustaceans, molluscs and other aquatic invertebrates (HS code '3') were recorded in the top of the export items to Thailand. This product group occupied 56 per cent of the total exports basket. Other vegetables textile fibres; paper yam and woven fabrics of paper yam (code '53') were the second largest commodity group with a contribution of 27 per cent in the total exports to Thailand. Raw hides and skins (other than furskins) and leather (code '41') had the third position and contributed 5 per cent in the exports basket. These three commodity groups were noticed as the items exported every year. The other 38 commodity groups that were exported to Thailand were sporadic in appearance. None of them was exported on a continuous basis. During the next five years from 1995196 to 199912000, a v e r a g e imports from V i e t n a m i n c r e a s e d more than double, but

Exports
Bangladesh's imports from Vietnam fall in 61 commodity groups. Cereals topped Bangladesh's imports from Vietnam (HS code '10') and its contribution to the imports basket was 34 per cent. But cereals were not imported every year. Out of the 14 years covered by this study cereals were imported in 6 years. Silk occupies the second position in the imports basket. It had a contribution of 16 per cent and was imported in almost every year. Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles (HS code '84') had the third position and contributed 8 per cent of the total imports from Vietnam. Since 1996/97, these products had been imported on a continuous basis. Cotton (code '52') was placed in the fourth position in the imports list and 6 per cent of the total imports. Cotton also was imported almost in every year. Oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder (code '12'), and nuclear reactors, boilers, machinery and mechanical appliances; parts thereof (code '83') had been discovered in the fifth and sixth positions respectively with 4 per cent contribution by each group.
In the exports basket of Bangladesh to Vietnam 30 commodity groups out of 97 such groups had been found. Raw hides and skins (other than furskins) and leather (code '41') with a contribution of 47 per cent to the exports basket were placed in the first position. These commodities had been exported continuously since 1993194. Fertilizers (code '3 1') were exported in only five years. Yet they had been found in the second place with a contribution of 36 per cent to the total exports to Vietnam. Pharmaceutical products (code '30'), and fish and crustaceans, molluscs and other aquatic invertebrates (code '3') were accorded the third and fourth positions respectively with a contribution of 5 per cent by each group to the total exports. Other vegetables textile fibres; paper yarn and woven fabrics of paper yam (code '537, and wood and articles of wood, wood charcoal (code '44') were in the fifth and sixth positions respectively each group separately contributing 2 per cent to the total exports to Vietnam.

Bangladesh-ASEAN: FDI Relations 5
We have aw-en in the previous chapter while analyzing trade and investment policies of Bangladesh that the country offers foreign investors every possible incentive to attract more and more  Bangladeshi entrepreneurs are also coming t o . the ASEAN countries with FDI. Such entrepreneurs had invested in some projects in Myanmar and Cambodia. But the number of projects and the invested amount could not be known because of lack of reliable source.

Conclusion
Bangladesh is undergoing a change in the pattern of its economic development. Industrialization has been taken place over the years. As a result, share of agriculture in the GDP has now reduced to around 23 per cent and that of industry, manufacturing and services has increased considerably. Its integration into the world economy has helped her reduce aid dependency. Poverty reduction now dominates the economic policy of the country. Bangladesh's 'look east' policy (see chapter one) is directed to this endto 'build partnerships' with the East and Southeast Asian countries 'for development and human security'. As globalization does not permit countries to live alone, Bangladesh seeks new partners of development in the East. Globalization asks for opening up national markets to foreign products. But the LDCs like Bangladesh and the developing countries also need to protect their national industries and thereby create employment opportunities. Therefore, these countries face a dilemma of compromise between these two needs. Products of the poor countries cannot compete with those of the developed ones. The industrialized North controls the process of globalization and is the driving force behind the global economic system. Thus, a need for South-South cooperation arises. Bangladesh's 'look east' policy may be explained as a part of this South-South cooperation globally and 'Asian brotherhood' regionally 6 .
Bangladesh and the countries of Southeast Asia share the same historical background. These countries were colonized by the same parasitic powers that now decide the shape of the multilateral trading system. Bangladesh shares the same cultural heritage with the Southeast Asian countries. Thus, mutual cooperation of these countries is to the benefits of themselves. Because the level of economic development of these countries does not differ greatly with each other as they do with the developed countries. While some of them have achieved a higher degree of industrialization like Singapore, Malaysia and Thailand, the others also are in the race. Trade and investment policies of these countries also are aimed at harnessing benefits from the globalizing trends without making big sacrifices to the rich countries at the cost of national interests. Most countries of Southeast Asia except the Indochinese ones have been integrated into the globalizing world economy since the Uruguay Round of the WTO. The collapse of communism has induced the Indochinese countries too to reorient their economies from centrally planned system to a market driven one. Thus, the new members of ASEAN are lagging behind the old members in terms of economic development. Bangladesh's economy falls between these two trends in ASEAN.
The 'look east' policy of Bangladesh is aimed at strengthening the bonds that exist between the peoples and integrating her economy with the economies of the East. Bangladesh believes that the mutual cooperation among the ASEAN members has helped them " Over the 14 years covered by this study, Bangladesh imported from ASEAN commodities mostly belong to mineral fuels, mineral oils and products of their distillation bituminous substances; mineral waxes (HS code '27'). These commodities constituted 23 per cent of the total imports of Bangladesh from ASEAN during these 14 years. The second important commodities belong to animal or vegetable fats and oils and cleavage products; prepared edible fats, animal or vegetable waxes (code '15'). This second group forms 12 per cent of the total imports during the same period. Both of these two commodity groups are primary product groups. The third and fourth commodity groups are nuclear reactors, boilers, machinery and mechanical appliances; parts there of (code '83'); and plastics and articles thereof (code '39'). These two commodity groups belong to manufactured product groups and made up 8 per cent and 7 per cent to the total imports respectively.
Bangladesh during those 14 years exported to ASEAN mostly fish and crustaceans, molluslts and other aquatic invertebrates (HS code '37, which constituted 19 per cent of the total exports. Mineral fuels, mineral oils and products of their distillation bituminous substances; mineral waxes (code '27') were in the second position in the exports basket, which made up 18 per cent of the total exports. These products are exported mainly to Singapore, Thailand and Malaysia. Also other vegetables textile fibres; paper yam and woven fabrics of paper yam (code '53') with the third position formed 18 percent to the total exports. Raw hides and skins (other than furskins) and leather (code '41'); and fertilizers (code '31') were in the fourth and fifth positions respectively with 10 per cent contribution by each group. Bangladesh's exports to ASEAN are mainly primary products. Table 4.1 summarises the top ten import and export commodity groups of Bangladesh from and to ASEAN in descending order (see Appendix-A for meaning of Codes).
The hypothesis of this research is neither nullified nor supported.
The research data shows that the hypothesis is conditional. If Bangladesh can conclude special trade agreements with ASEAN or can any way increase its exports to the ASEAN countries and thereby reduce the trade deficits only then the hypothesis will be proved. Otherwise it would be nullified. But this is not the right time to opine for either of them. Engagement with ASEAN can economically benefit Bangladesh only when it will be able to boost exports to ASEAN and attract more FDI fi-om this region to Bangladesh. But engagement with ASEAN will enhance mutual cooperation.

Recommendatioizs to GOB 1 .
Product Diversification: Bangladesh needs to diversify its manufactured products. While Bangladesh's imports from the ASEAN countries fall into a wide range of commodity groups, its exports fall into only a few commodity groups. Bangladesh needs to replace primary products by adding more values to them.
2. Quality Improvement: Product diversification alone would not be enough to boost exports. They must be competitive. Best quality products should be supplied at comparatively low cost. Otherwise they will not be able to survive in this age of regional integration and globalization.