Bangladesh-Nepal

India-Bangladesh renew trade ties

Delhi and Dhaka have renewed the 1980 trade agreement for anothe three years but made no forward movement on allowing transit through Bangladesh of Indian goods to India's north-east


India and Bangladesh have signed a new bilateral trade agreement marking Indian External Affairs Minister Pranab Mukherjee to Dhaka on Feb 9. Mukherjee and Bangladesh Commerce Minister Faruk Khan initialed the trade agreement valid for the next three years. As of now the balance of trade weighs heavily in favour of India. The trade gap is about $2 billion a year.

Bangladesh government high officials said if the treaty originally signed in 1980 is implemented, not only India will be benefited in transporting goods to its north-eastern states, but Bangladesh will also have a huge economic boost by being able to use the territory of India to reach Nepal and Bhutan with its goods.

Pranab and Bangladesh Industries Minister Dilip Barua signed the new Bilateral Investment Promotion and Protection Agreement (Bipa). It seeks to promote and protect investments from either country in the territory of the other, with the objective of increasing bilateral investment flow.

With Bipa in place, Bangladesh and India can now give each other the most favoured nation (MFN).status.

The trade agreement is not a new framework. It is a replica of the 1980 agreement which is getting extension every three years. It has provision to let transit facility for Indian goods destined for north-east India  but has not been implemented as yet.

There is political opposition to letting India use rail, road and waterways of Bangladesh to reach out its northeast.  BNP, the main opposition has threatened to launch a protest with the caveat that it will not stand in the way if Bangladesh vehicles are used for transporting Indian goods through Bangladesh.

This is not a new demand. It has not found favour with Delhi. First because of the loading and unloading of vehicles that had to be undertaken first at the entry and then exit point of Bangladesh. Second there is security and logistic angle,

But Bangladesh government high officials said if the treaty originally signed in 1980 is implemented, not only India will be benefited in transporting goods to its north-eastern states, but Bangladesh will also have a huge economic boost by being able to use the territory of India to reach Nepal and Bhutan with its goods.

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