'16'

    The full gamut of bilateral trade issues was discussed. The Bangladesh delegation referred to huge trade imbalance that exists between the two countries and highlighted the need for greater market access to India of its products. In this context, the Bangladesh delegation suggested the Indian side to give duty-free access to twenty-five categories of Bangladesh products representing 191 tariff lines at the six-digit HS level.

    The Indian side responded positively and agreed that India will provide duty-free access to forty tariff lines at the six-digit HS level corresponding to sixteen categories of Bangladesh products immediately. These forty tariff lines include products in which Bangladesh has export capability. Duty free access to the remaining tariff lines at the six-digit HS level would be discussed between the two-sides at the earliest. The Bangladesh side welcomed the Indian offer.

    The Bangladesh side referred to the non-tariff barriers faced by some of its exports to India in general and to West Bengal in particular. The included the luxury tax imposed by the Government of West Bengal. The Indian delegation pointed out that this tax was not exclusively aimed at Bangladesh products. However, the Indian delegation agreed to take up this issue with the West Bengal Government. Further, the Indian side offered to assist Bangladesh in expanding its exports to other Indian states as well.

    Both sides agreed that customs and allied administrative procedures needed to be streamlined to facilitate unhindered flow of trade between the two countries and agreed to address these issues on a priority basis. In this context, it was agreed that the joint group of customs officials of Bangladesh and India would meet as early as possible to address these issues.

    The Indian side drew attention to the fact that in the last trade review talks held in May 2000, both sides had agreed to refer the issues of border trade, transshipment of Indian goods through Bangladesh, and deepening of tariff concessions to a joint group of experts. The Bangladesh delegation took note and suggested that the issues of border trade and transshipment be taken up by the Joint Economic Commission, which is scheduled to meet shortly.

    The Indian side referred to recent notification by the Government of Bangladesh prohibiting the land route for Indian exports of cotton yarn and tender notices for the import of sugar prescribing only the sea route. The Indian side reiterated that the traditional, practical and more economic land route be restored for Indian exports of these items to Bangladesh. The Bangladesh delegation agreed to take up this issue with the National Board of Revenue.

    Both sides agreed to continue discussions and to hold the next round of talks as early as possible.