Japan is leading the construction of the Matarbari deep-sea port in Bangladesh. This strategic project aims to link India’s northeastern states with Bangladesh, paving the way for increased trade and investment opportunities.
In a report by Nurul Islam Hasib for Dhaka Tribune, Dr Abdullah-al-Mamun, associate professor of the Department of Japanese Studies at Dhaka University, said that the trilateral cooperation aims to strengthen economic partnerships, enhance maritime security, develop industrial value chains, and improve connectivity in the region.
International relations expert Prof Shahab Enam Khan said that together Bangladesh and Japan aim to raise the economic profile of India’s Northeast, reducing regional disparities and insurgency.
“This is necessary because instability has a spillover effect on Bangladesh,” he was quoted as saying.
According to the report, Japan has long been involved in building the Matarbari deep-sea port in Bangladesh. However, Japanese Prime Minister Fumio Kishida’s policy speech last year in May in New Delhi was an eye-opener for many.
“Viewing Bangladesh and other areas to the south as a single economic zone, we will promote the Bay of Bengal-Northeast India industrial value chain concept in cooperation with India and Bangladesh to foster the growth of the entire region,” Prime Minister Kishida had said.
Referring to the comment, Prof Mamun said both Japan and India have “significant, serious, and senior-level commitment. That means this region has high economic potential.”
“It’s a top-level priority particularly for Japan and India. India has adopted an Act East policy, financial dependence of which is on Japan,” he said, adding that the Matarbari deep-sea port will be a trade gateway for the landlocked Northeast India.
According to Prof Mamun, India is establishing an Integrated Check Post (ICP) at Sabroom to make it a hub to connect Matarbari through the Sabroom-Ramgarh road connectivity.
The Northeast has significant potential in terms of becoming a value chain with its agriculture, horticulture, processed food, handmade fibre, handicraft, automobile, pharmaceuticals, and rubber products.
“Japan also takes interest because it is relocating its production hub from China and ASEAN countries. Cheap labour in Bangladesh and India’s Northeast is an attraction for Japan,” he said.
Prof Shahab Enam Khan said Bangladesh-Japan bilateral cooperation has become a “regional role model” based on age-old genuine commitments and the spirit of common development.
“Both countries see that economic and security stability in Bangladesh’s neighborhood is required for sustainable regional growth,” he said.
“For example, Japan’s Big-B initiative will significantly impact Bangladesh’s socio-economic growth, and scaling up such an initiative has the potential to stabilize Rakhine in Myanmar, too.
“A Bangladesh-Japan joint partnership can help uplift the insurgency-prone Indian Northeast’s economy and livelihoods, where multidimensional poverty and growth retardation are widely prevalent.
“I think this bilateral cooperation has the potential to help minimize Indian regional disparity between and within them,” Prof Khan said.
In terms of economies of scale, he said: “it is more pragmatic to see trilateral cooperation as an effort to minimize economic root causes behind instability in the Indian Northeast rather than significant trade gains for Bangladesh.”
“From Bangladesh’s perspective, regional cooperation should not be confined to a sub-regional level. Bangladesh’s economy certainly needs expansion by connecting itself with Central and Southeast Asia,” he said.
However, there are challenges including trade integration and addressing trade deficits, with the need for cooperation to overcome barriers and facilitate investment, according to Dr Mamun.
He also pointed out that civil society engagement and addressing security concerns, such as insurgencies in the northeast, are crucial for success.
“Japanese companies are eager to set up their factories inside Bangladesh along the border due to security concerns in the northeast. But India will certainly want those investments in the Northeast,” Dr Mamun was quoted.
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