Bangladesh and Pakistan have made the decision to restart their trade partnership after twenty years. Under the new deal, Bangladesh is now allowed to use Pakistan’s Karachi port for its exports. This makes it easy for Bangladeshi goods to reach global international markets without sole dependence on India. This also benefits Pakistan as it earns money from shipping and can strengthen trade links. This agreement comes at a time where Bangladesh and India have had tense relations, so this serves as a way that Bangladesh can increase its freedom regarding trade. Both sides wish that this new agreement will increase business and aid in building trust between the two nations again.
This shows how countries can use trade as a means of improving their relationships. Bangladesh is trying to spread out its connections instead of only being dependent on one neighbor that is India. Pakistan wants to show that it is able to play a strong role in South Asia’s economy. Moves like this can slowly change the relationship a country has in its respective region. It could make South Asia more balanced, with more countries now having more of a choice on who to work with and how to work with them.
The Main stakeholders involved are the Governments of both Pakistan and Bangladesh,traders,shipping companies, and nearby countries like China and India. Bangladesh needs to make sure the deal is beneficial for business and will not create any additional issues. Pakistan will now need to invest more in its ports and roads in order to make trade easier and more efficient. India might react by attempting to keep Bangladesh as a trading partner with its own deals. If communication remains steady and the stakeholders are willing to work together, trade could be a way to ease tensions as opposed to increasing them.
It’s apparent that trade and transport can be crucial in shaping the relationships between two countries. This serves as a good example of that because its not about war or rivalry, but solely about using economics as a way to build influence in a particular region. Bangladesh is showing its independence and sovereignty by making its own decisions regarding trade, and Pakistan is using trade to build a better image for itself among fellow states in the region. A small but important step for better regional cooperation in South Asia.
