Bangladesh–Nepal Trade Relations: Understanding the Influence of Economic Diplomacy

Abstract

Economic diplomacy is one of the most important means through which governments comprehend their national interests. Bangladesh-Nepal bilateral relations, featuring equal and sincere treatment, mutual support and friendship for generations, can be an example for relations between two countries. Nepal's relationship with Bangladesh is unique. The relations have improved and the major stake in the relationship lies in strengthening the border areas and in improving people-to-people contact and furthering economic relations and trade. Economic and commercial relations between Nepal and Bangladesh have been growing steadily over the years. However, the volume of bilateral trade has not seen much improvement despite tremendous potentials for expanding and diversifying trade between the two countries. Attaching importance to the influence of economic diplomacy, Bangladesh Government has to focus on convincing people, even some of its neighbors, as well as South Asian Free Trade Area (SAFTA) framework of SAARC that Bangladesh offers excellent investment opportunities and that the overall investment climate is conducive to foreign investment. Economic diplomacy of Bangladesh should go beyond political relations and help pave a way for globalization. Nepal and Bangladesh have to keep friendly relations with India because of their similar cultural and religious traditions and geographical attachment.