Plan to explore $500bn market in D-8 region

The D-8 Organisation for Economic Cooperation, also known as Developing-8, is planning to explore $500 billion market in next five years through comprehensive economic partnership agreements.

Sheikh Fazle Fahim, President of D-8 Chamber of Commerce and Industries (D-8 CCI), disclosed it at an exclusive interview with the Daily Sun on Saturday ahead of trade expo and ministerial conference on July 26-27. 

“The D-8 countries like Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey have $5 trillion market in size. We want to explore only $500 billion market through comprehensive deals,” he said.

Most of the countries of the bloc are facing inflation, supply chain disruption and currency market volatility, Fahim said.

He thinks that the comprehensive economic partnership agreements will help the countries overcome the crises.

“I already placed the idea of comprehensive economic partnership agreement before top ministers in Turkey, Indonesia and Nigeria. We discussed the matter. They are interested in it,” the D-8 CCI chairman said.

He said the D-8 CCI would also come up with a proposal on alternative financing before the member countries through cross-country currency swap that will help to mitigate the foreign currency crisis.

According to him, Indonesian achieved economic benefits through the currency swap.

Enhancing the money supply by the US devaluated the currencies in different countries, creating pressure in the currency market across globe amid the Russia-Ukraine war.

Due to the crisis, China cut down raw materials supply, which also pushed up the raw material costs, he observed.

The currency swap may help the D-8 countries to deal with any such crisis in the future, said Sheikh Fazle Fahim, adding that “the currency swap may save foreign currency and it helps the countries have stable foreign currency market.”

The D-8 countries might also get benefit from the sharing of technological advancement among themselves, he observed.

“Now Nigeria securedthe 11th position in energy reserves while Iran is in fifth position. We can also benefit from it as there are UN guidelines creating scope to import fertiliser from these countries,” said Fahim, also the former of president of FBCCI, Bangladesh’s apex trade body.   

In the new normal economic scenario after the Covid-19 pandemic, various countries are exploring bilateral and multilateral ties through negotiations.

“The D-8 CCI is also working to explore such relations through building cooperation and mutual understanding,” the President said.

Talking about the main objective of the July 26 expo and July 27 conference, he said,“The events will help theprivate sector create more engagement with each other in the D-8 region. This will also focus on standardizing and modernizing services and products.”

He added, “The D-8 CCI works to ensure free flow of goods and services among the member countries. This also works to manage and mitigate major crisis the countries face.”

D-8 CCI President is hopeful that the initiative will come into reality “as most of the countries seek alternative market for food and energy security during global crisis.”

Bangladesh industrial policy fixed only 14-15 products for diversification. “But I also ask for focusing on high-value products.”

Besides, D-8 countries can explore marketin agriculture, logistics,ICT, cyber security components and defense components through establishing joint ventures, he said.

Sheikh Fazle Fahim said Bangladesh would showcase their high-value and innovative products at the expo on July 26, where top trade body leaders from eight countries will attend.

He said the foreign currency market volatility would come down gradually after implementation ofthe austerity measures taken in the power and energy sector.

“Our main challenge is to reduce import dependency and stabilise foreign currency market in the coming days,” stressed Sheikh Fazle Fahim.