Md. Abdullah-Al-Mamun

In the realm of international relations and political economy, trade often transcends political hostilities. Even trade relations with foes helps enable countries to secure economic stability. For smaller countries like Bangladesh, maintaining trade relations with adversarial neighbors such as Myanmar (Bangladesh and Myanmar shares border) and Pakistan (Pakistan and Bangladesh do not share border) present the necessity of pragmatism in foreign policy. Despite historical tensions—from the Rohingya crisis with Myanmar to the scars of the 1971 Liberation War with Pakistan and Pakistan’s oppression period from 1948 to 1971 in Bangladesh (the East Pakistan then)—economic imperatives drive the continuation and even expansion of trade ties. Strategically positioned in South Asia, Bangladesh faces the dual challenge of fostering economic growth while managing strained relationships with its neighbors, but they are foes historically. By drawing on insights from scholars like Professor Mariya Grinberg of MIT, Edward Mansfield’s theory, the theories of Professor Jeffrey Sachs of Columbia University, and practical examples of global trade among rivals, I—the author— underscore how Bangladesh's trade strategy prioritizes economic resilience, regional connectivity, and global competitiveness while carefully managing geopolitical risks.

Professor Mariya Grinberg’s, MIT professor, Research on Trade and Conflict underscores increasingly the necessity of decoupling trade from political conflicts or any kind of war. In her important work, Grinberg argues that nations often maintain economic exchanges with adversaries because the benefits often outweigh the risks associated with political discord. Because economic exchanges act as one of the catalysts in maintaining economic stability, market access, and supply chain continuity. Therefore, according to her, even in situations of active conflict or deep-seated hostility, trade persists because it serves as a stabilizing factor, ensuring that domestic markets remain functional and consumer needs are met. As of today, Bangladesh continued import of agricultural goods like onions, lentils, and spices from Myanmar, despite the Rohingya crisis, reflects this principle. And this trade relations should be continued despite an array social and political conflicts.

The Rohingya crisis that has strained diplomatic relations between the two countries (Bangladesh and Myanmar), has not led to a complete cessation of trade because essential commodities are of utmost importance for Bangladesh owing to maintain food security and control inflation. Similarly, Edward Mansfield’s— a professor at the University of Pennsylvania—theory on economic interdependence provides further validation for Bangladesh’s approach. Edward Mansfield actually emphasizes that trade fosters mutual dependencies that can act as deterrents against escalated conflicts, might be a game changer as well. It is outright true that economic interdependence helps a lot eliminate geopolitical tensions forever, but it creates a framework for continued dialogue and cooperation, even in adversarial relationships, as well.

A prime example is the evident in Bangladesh’s recent direct, Pakistan to Bangladesh, resumption of trade with Pakistan, previously both countries had no direct shipping pathway. After decades of strained ties following Bangladesh’s independence in 1971, Pakistan’s use of Bangladesh’s Chattogram port for shipping and growing trade volumes in key sectors: textiles, agriculture and pharmaceuticals signal a pragmatic shift. By engaging economically with Pakistan, Bangladesh diversifies its trade portfolio. Even the country strengthens regional connectivity as well. Through which, Bangladesh has become successful in reducing its overreliance on traditional trading partners like India and China.

Practical examples of trade among countries those were, are foes historically, further underscore the rationale behind Bangladesh’s approach towards building more effective trade relations with Myanmar and Pakistan. Historically, many countries around the world have often traded with their rivals out of economic necessity and even are continuing. For instance, the United States and China. Despite ongoing geopolitical rivalries and trade wars, they are still each other’s largest trading partners. Statistics shows that with bilateral trade surpassing $690 billion in a single year, 2022. This relationship highlights how economic pragmatism often prevails over political discord. Both countries, despite having war-like situation over Taiwan and Hong Kong issues prioritize market access and supply chain stability.

In South Asia, another bilateral relation between two is India and Pakistan. These two countries' bilateral trade, though limited, persisted even during periods of heightened tensions including cross-border skirmishes. Another shining example: South Korea and North Korea, meanwhile, despite a technically ongoing state of war, they both are engaged in economic cooperation through the Kaesong Industrial Complex. This has provided mutual economic benefits and a platform for dialogue. Bangladesh’s trade with Myanmar and Pakistan mirrors these global precedents. The importance of economic resilience over ideological alignment is of utmost importance.

Bangladesh’s Economic Imperatives make trade with Myanmar and Pakistan a necessity rather than an option. Myanmar serves as a vital source of agricultural products. This has been helping Bangladesh for decades stabilize its domestic food markets and control inflation. Which means, any disruption in this trade will, hands down, disproportionately affect low-income households, exacerbating socioeconomic inequalities. On the other hand, Pakistan offers opportunities for industrial collaboration, particularly in textiles and raw materials that support Bangladesh’s ready-made garments (RMG) sector—the backbone of its economy. Engaging with Pakistan through trade also provides a cost-effective alternative to sourcing materials from distant markets, reducing transportation costs and enhancing the competitiveness of Bangladeshi exports.

The Strategic Importance of Regional Connectivity (BCIM Economic Corridor, BRI led by China, the Indo-Pacific Strategy led by the USA, India-Bangladesh-Myanmar-Thailand quadrilateral, and ASEAN) further bolsters, will be continuing down the line, the case for deepening trade relations with both Pakistan and Myanmar. Bangladesh ought to and must leverage its geographic location to enhance connectivity and facilitate cross-border commerce provide that the country aspires to become a regional trade hub in the foreseeable future. The question arises: how? The answer is: Myanmar serves as a gateway to Southeast Asia, while Pakistan provides access to Central Asia and beyond. By fostering robust trade ties with these neighbors, Bangladesh can position itself as a very crucial link in regional supply chains. This must attract investments (FDI) and boosting economic growth (GDP). This aligns outright with the theories of Professor Dani Rodrik. Dani Rodrik actually emphasizes the role of trade in fostering regional integration and economic diversification all the way. The thing he wants to specify is: smaller countries need to actively participate in regional trade networks to mitigate the vulnerabilities associated with overreliance on global markets. Therefore, based on his theory and insights, mitigating risks and addressing criticism is highly important for the sustainability of Bangladesh’s trade strategy. At the same time, it is mentionable that while trade with adversaries offers significant economic benefits, it also poses some challenges, such as domestic backlash and potential political leverage by trading partners. Maintaining trade relations with Myanmar amid the Rohingya crisis has drawn criticism from human rights advocates and organizations. They argue that it undermines Bangladesh’s moral stance. Similarly, economic engagement with Pakistan is viewed skeptically by those who remember the atrocities of 1971 by Pakistan administration (West Pakistan then). These, truly unavoidable, criticisms can be addressed, at least be mitigated, through two ways I reckon: first of all, transparent communication; plus, strategic diversification. By which way, by framing trade as a pragmatic necessity rather than a political endorsement, the Bangladeshi government can justify its policies to domestic and international audiences.

Global lessons offer valuable insights for Bangladesh. Countries like Turkey and Armenia, which have begun normalizing trade relations despite historical animosities. The newly developed relations demonstrate that economic engagement can serve as a bridge to improved diplomatic ties. Similarly, Vietnam and the United States, once adversaries during the Vietnam War, now enjoy robust trade relations. Bangladesh can draw on these examples to craft a trade policy that balances pragmatism with principle, ensuring that economic imperatives do not compromise its long-term sovereignty and security. The Role of diversification and domestic resilience is paramount in strengthening Bangladesh’s trade strategy. Diversifying export markets beyond traditional partners like India, China, and the United States reduces the risks associated with geopolitical shocks. Expanding trade relations with Africa, the Middle East, and Southeast Asia can enhance Bangladesh’s economic resilience and global competitiveness. Simultaneously, investments in domestic agriculture and manufacturing can minimize reliance on imports, creating a more self-reliant economy. This aligns with the theories of Professor Jeffrey Sachs of Columbia University, who advocates for sustainable development through a combination of trade diversification and domestic capacity building.

Bangladesh’s decision to continue and deepen trade relations with Myanmar and Pakistan reflects a pragmatic approach to navigating the complexities of geopolitics and economics. Drawing on insights from global precedents cited in this article and scholarly theories by preeminent professors mentioned above, the necessity of maintaining these economic ties is a must for Bangladesh since trade with Myanmar, despite having some challenges, ensures food security and price stability, while engagement with Pakistan, though, supports industrial growth and regional connectivity. By learning from global examples and leveraging its strategic location, Bangladesh can craft a trade policy, which not only ensures economic resilience but also fosters regional integration and global competitiveness. In a world increasingly shaped by geopolitical polarization, Bangladesh’s current pragmatic trade strategy and more future robust strategy offers and will proffer a roadmap for other countries facing similar challenges. Through which, Bangladesh can set an example or prove that trade, even with adversaries, can be a tool for stability, growth, and strategic independence.

The writer is a, He is a seasoned feature article writer, contributing engaging insights to both national and international news platforms.