South Asia needs regional energy partnership to withstand global trade shocks: Experts
South Asia needs regional energy cooperation to withstand trade shocks
Bdbusinessdaily.com – South Asia needs regional energy cooperation to reduce its exposure to geopolitical tensions, unstable supply chains and rising import costs, experts said at a Dhaka roundtable. Stronger links in electricity, trade and investment could help countries across the region respond more effectively when global markets are disrupted.
The discussion, titled “Rewiring Global Trade,” was held alongside the three-day Bay of Bengal Conversation 2026 at the Pan Pacific Sonargaon Hotel on 4 October. The Centre for Governance Studies organised the session, which was moderated by Suthikorn Kingkaew, adviser to Thailand’s KBU Research Institute.
Speakers described a global environment affected by the US-China trade war, the Israel-Iran conflict, the Russia-Ukraine war and a weakened ability of the World Trade Organization to settle trade disputes. Such pressures have made supply routes less predictable and highlighted the risks for economies dependent on imported fuel and industrial materials.
Regional power links can strengthen resilience
Dibya Mani Rajbhandari, a former member of Nepal’s parliament, proposed closer electricity cooperation among Bangladesh, India, Nepal and Bhutan. He said a regional power hub could help the countries use their complementary energy resources while improving their ability to deal with trade disruptions.
“We can build a regional power hub involving Bangladesh, India, Nepal and Bhutan so that we can face global disruptions in trade.”
For countries facing volatile fuel prices, cross-border power connections and joint planning could provide greater flexibility. South Asia needs regional energy arrangements that make better use of available electricity resources and offer alternatives when imported energy becomes costly or difficult to secure.
Rajbhandari said cooperation should not stop at electricity. Broader coordination on trade and investment could give countries more options when geopolitical competition affects shipping routes, prices or access to essential goods.
Renewed cooperation through SAARC
Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, called for a more active South Asian Association for Regional Cooperation, or SAARC. He said the organisation could again support cooperation among countries on business, investment and energy.
“Trade in the SAARC region should be a win-win situation so that all countries can benefit equally.”
Russell said strained relations among member states have stopped the region from reaching its full economic potential. Despite its large population, industrial capacity and geographic connections, South Asia has yet to achieve the level of intra-regional trade and collaboration that businesses need.
Building practical partnerships could support a more resilient regional economy. South Asia needs regional energy planning alongside trade cooperation, particularly as countries seek to protect businesses and consumers from external shocks.
Trade diversification remains important for Bangladesh
Anwar-ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries, discussed Bangladesh’s prospects following its trade agreement with the United States. He said the agreement could create opportunities for expanded trade, although restrictions on inputs imported from China could limit the benefits for some businesses.
“Bangladesh should sign trade agreements with different major trading partners.”
His comments underlined that market access alone does not determine whether a trade agreement benefits exporters. Rules on sourcing, manufacturing and imported materials can affect whether companies are able to use preferential arrangements fully.
A broader network of trade partners could give Bangladesh more flexibility as global production chains change. Diversifying markets and sources of industrial inputs may help reduce dependence on any single country or route.
Technology and renewable energy opportunities
Nicolas Weeks, Sweden’s ambassador to Bangladesh, said Bangladesh has considerable potential to expand renewable energy. He said Sweden and the European Union can offer technology to support the country’s energy transition.
Weeks also stressed the importance of diversifying Bangladesh’s exports beyond garments. While the garment sector remains central to the country’s trade, a wider export base could create new opportunities for growth and reduce reliance on one industry.
“The EU can very much be a part of the journey that Bangladesh goes towards diversification of export.”
He noted that about 44% of Bangladesh’s exports go to the European Union. Greater access to technology, investment and regional cooperation could help Bangladesh pursue both export diversification and cleaner energy development.
FAQ: Regional energy cooperation in South Asia
Why does Bangladesh need stronger regional energy links? Cross-border electricity cooperation can give Bangladesh additional options when imported fuel prices rise or supply routes are disrupted. It can also support planning for growing power demand and renewable energy development.
Which countries were mentioned for a regional power hub? The proposal discussed cooperation involving Bangladesh, India, Nepal and Bhutan.
How can SAARC help regional trade and energy cooperation? Speakers said a more active SAARC could provide a platform for countries to pursue mutually beneficial trade, investment and energy partnerships.
What is the main message from the Dhaka discussion? South Asia needs regional energy cooperation, stronger trade ties and broader investment partnerships to become more resilient against global trade shocks.