In South Asia, ‘Look East Policy’ is no longer followed exclusively by India. Now one of its eastern neighbour Bangladesh has also started looking east to improve trade, commerce and diplomatic ties with Myanmar. This policy of Bangladesh was strengthened by the recent visit of Myanmar Prime Minister to Dhaka.

Myanmar and Bangladesh share a 256-kilometer (159-mile) border but virtually no link existed between them since 1980. Myanmar's former dictator Ne Win, was the last head of state from the country to visit Bangladesh. The relationship between the two countries started deteriorating in 1991 when more than 2.5 million Rohingya Muslims fled to Bangladesh from Myanmar's northwestern Rakhine state to escape persecution by Myanmar's military rulers. Only 230,000 have returned to Myanmar since 1993, when the U.N. High Commissioner for Refugees began a repatriation program. However, about 20,000 Rohingya refugees are still left in camps in Bangladesh.

The relationship between Bangladesh and Myanmar was re-established on 17 December 2002 with the visit of Prime Minister and Chairman of the State Peace and Development Council (SPDC) of Myanmar, General Than Shwe. During that visit, both countries agreed to establish a direct road link between them to promote business and increase people-to-people contact. Understandings were also reached to make coastal shipping arrangement, avoid double taxation and extend visa tenure for Bangladeshi businessmen for at least six months. Their foreign ministries agreed to meet in the two capitals, alternately at least once a year to discuss bilateral issues of mutual interest. Finally, an agreement was signed to promote and strengthen relations in varoius fields, including art, music, education, research, media and tourism. However, the Dhaka-Yangon summit, failed to make any progress in resolving the long pending issue of repatriating Rohingya refugees to Myanmar.

The visit of Myanmarese leader was followed by a return visit of Bangladeshi Prime Minister, Khalida Zia in March 2003 when a Statement of Intent for implementing the road link project was signed between the two countries.

The latest visit of Myanmar Prime Minister, General Khin Nyunt to Bangladesh has further strengthened the bilateral relationship between the two countries. During his visit, Dhaka and Yangon signed three Memorandums of Understanding (MoUs) for strengthening cooperation in the farm sector, construction of a link road and for waiving visa fees for diplomats and government officials. According to the MOUs, the two sides have agreed to appoint task forces to sort out the financial requirements, conduct necessary survey and other works for the projects. The cost of the road, which has been called ‘the friendship highway’, is estimated at $100 mn, within which Bangladesh has agreed to build a bridge across the Naaf river. Bangladesh has given Myanmar $10 million to construct bridges and culverts on its side of the border. The road will run for 36 kilometers within Bangladesh and extend to another 97 kilometers within Myanmar across the border town of Mongdu in the state of Arakan. Bangladesh hopes, this highway would subsequently link Dhaka to the Asian Highway that will go through 38 other countries.

Both the countries have agreed to take steps in line with the 1994 agreement on narcotics control to combat drug trafficking and hold quarterly consultations to sort out border irritants and check cross-border crimes. Moreover, General Nyunt has assured Bangladesh of welcoming her to the Asian Regional Forum (ARF) and working to build a bridge between the SAARC and ASEAN. He invited Khaleda to participate in the national reconciliation process in Myanmar, which is also known as the Bangkok Process. Bangladesh accepted the invitation and agreed to cooperate with Myanmar in its efforts to democratize the country.

For a long time Myanmar followed an isolationist policy. But this policy has been undergoing change in recent times and Myanmar has established relationship with its neighbours under ASEAN. Besides, it is also part of another grouping BIMST-EC. Bangladesh stands to gain immensely by improving its relationship with Myanmar. It might expand trade and investment opportunities and provide an outlet for Bangladesh to the rest of Southeast Asia. In the fiscal year 2001-2002, Bangladesh officially imported goods worth $0.28 mn from Myanmar while exporting goods worth $0.04 mn to that country. However, much more unofficial trade goes on between the two countries. This large volume of illegal trade could be routed through legal channel if normal relation is established between them. Though no major advance was made on the issue of repatriation of Rohingya refugees, the summit has also agreed to solve the issue gradually. The look east policy of Bangladesh promises to bring not only commercial benefits to the country but can also improve its political standing among the nations.