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Trade talks between Bangladesh and India in Delhi May 10-11

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May 9, 2000

 

Dhaka, May 8 (UNB)- Duty-free access of 25-category Bangladeshi items to Indian market will figure high in the secretary-level trade talks between Bangladesh and India in Delhi May 10-11.

 

Bangladesh’s commerce secretary Golam Rahman will leave Dhaka tomorrow (Tuesday) to meet his Indian counterpart, PP Prabhu, to find out ways and means of increasing volume of bilateral two-way trade between the two neighbors.

 

The balance of trade tilted towards India. Bangladesh exports figured about 60 million dollars in 1998-99 fiscal year while imports stood at 1.236 billion, leaving a trade deficit of 1.176 billion dollars.

 

Hurdles in way of specific exports from Bangladesh, improvement of infrastructures, including customs points, roads, railway and waterway, joint-venture prospects and exchange of trade missions, are among the agenda of Bangladesh.

  

The meeting follows bilateral talks between Bangladesh’s Commerce Minister Abdul Jalil and his Indian counterpart, Murasali Maran, on the sidelines of BIMSTEC trade ministers’ talks in Delhi late last month.

 

Following formal commitment made by Indian Prime Minister Atal Behari Vajpayee during his Dhaka visit last year, Bangladesh made a list of 191 items under 25 broad categories for duty-free entry into Indian market. The list, sent to Indian authority few months back, still awaits their final decision.

 

Transshipment, a strong demand of India for carrying its goods through Bangladesh’s territory, is very likely to come up in the talks between the two secretaries.

 

But Dhaka is yet to finalize its position on the politically contentious issue, unofficially tagged by Indian side to duty-free access of Bangladeshi products.

 

“We’re not in a hurry about transshipment. We’re awaiting reports of expert committee and the Task Force,” said a Commerce Ministry official.

 

The expert committee, comprising both local and foreign experts, has submitted its draft report to the Commerce Ministry, but the Task Force could not yet produce any report, the official said.

 

Returning from Delhi last month, Commerce Minister Abdul Jalil also said the government wanted to go through it before going to implement it as the issue entails various implications.

 

Bangladesh will also strongly lobby extending 50 per cent duty concession to 216 items, as agreed by the Gujral regime. Some 171 items are enjoying the facilities at present and the Indian Commerce Minister assured Jalil of implementing the decision for the rest 39 items.

 

Besides, Bangladesh will raise the harassment by Indian authorities on some Bangladeshi exportable, including Rahimafrooz battery, raw jute and jute goods, T-shirts, beauty soap, melamine and snacks.    

 

Indian customs claim 35 per cent duty or Tk 450, whichever is the highest, for exports from Bangladesh, which is a “clear violation of WTO rules of customs duty,” a Commerce Ministry official said.

 

Bangladesh allows Indian trucks to enter three km inside, but Bangladeshi trucks are forced to unload on no man’s land. Besides, Indian authority does not allow more than 50 trucks from Bangladesh a day, the official said. “All these should be on the reciprocal basis,” he said.

 

The official however said the problems might remain at the implementation levels, not at the highest policy level.

 


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