DHAKA, July 15: Prime Minister Khaleda Zia has told India’s visiting External Affairs Minister Yashwant Sinha that increased trade among South Asian neighbours would go a long way to make the South Asian Association for Regional Cooperation (Saarc) more meaningful, the prime minister’s press secretary told newsmen this morning.

Sinha, in Dhaka on a two-day official visit leading his country’s delegation to an Indo-Bangladesh Joint Economic Commission (JEC) meeting, called on the prime minister at her office on Tuesday.

Khaleda Zia also told Sinha that compared to other regional forums, trade between Saarc members is still insignificant, standing at only four per cent of total trade of the countries. “The Saarc countries must increase trade among themselves to make the forum more effective”, Khaleda was quoted to have said to the Indian minister.

As regards the bilateral relation between Bangladesh and India, Ms. Zia told Sinha that reducing the widening trade gap between the two countries was essential for a relationship of mutual cooperation, the PMO sources said.

Sinha told the prime minister of India’s desire that the JEC should now meet every year. The current meeting is convening after a gap of six years.

Meanwhile, in the afternoon, Indian delegation showed a cold shoulder to Bangladesh’s proposal for six months’ unilateral opening up of Indian market for Bangladeshi products. Bangladesh team, on the other hand, declined to entertain India’s request for giving a time-frame for allowing India transit through Bangladesh territory.

Difference on key bilateral issues, specially transit and trade, dominated the Indo-Bangla Joint Economic Commission (JEC) talks held here today.

Nothing about the outcome of the talks was officially told as a scheduled joint press briefing following the day-long meeting, spreading over two-sessions, was postponed in the evening.

Foreign Minister M Morshed Khan and his Indian counterpart Yashwant Sinha led the two sides in the crucial JEC meet that failed to tame thorny debates on contentious issues from transit to trade, according to a competent source.

Another source in the meeting pointed out that the Indian side took a rigid stance on disapproving of a list of 118 items for duty-free access, “in a tit for tat measure” for Dhaka’s rejection to allowing India transit.

“Question does not arise to start negotiation with transit or transshipment as we’re not prepared for that at the moment,” the Bangladesh Foreign Minister, Morshed Khan told newsmen after the talks.

The meeting sources also said the Indian side turned down a Dhaka proposal to open India’s market unilaterally for six months before striking a free trade agreement (FTA).

Dhaka has been insisting on the six months’ unilateral opening up of Indian market as a sign of reciprocity to the weaker trading partner giving it a time to mature for coping with the FTA since the idea was officially mooted during Finance and Planning Minister M Saifur Rahman’s New Delhi visit in May.

On Tuesday, senior officials of the Bangladesh team came up with a list of 118 items, including apparel and cement, for allowing duty-free access to the Indian market on an interim basis for six months for building confidence about the proposed FTA. But the Indians rejected it, sources added.

However, during the JEC meet, Indian officials did not raise the issue of pipeline export of gas because of the domestic debates with the matter.