INDIA, BANGLADESH HOLD TRADE TALKS
RENEWAL OF TRADE AGREEMENT SOON
The Bangladesh-India
trade talks at the Joint Secretary level on non-tariff barriers,
revision and renewal of the Bilateral Trade Agreement as well
as the first round of negotiations on the proposed bilateral Free
Trade Agreement (FTA) were held in Dhaka on 20-22 October
2003. The two delegations were led by Mr. Elias Ahmed, Bangladesh
Ministry of Commerce and Mr. S. Ramasundaram, Joint Secretary,
Ministry of Commerce & Industry, Government of India respectively.
Following sustained dialogue over a period of two years, the two
sides successfully reached agreement on a revised draft for the
bilateral Trade Agreement signed in 1980. The Agreement is likely
to be signed in the near future after the approval of the respective
governments has been obtained. The new Agreement will reflect
the long-standing goodwill and spirit of cooperation between the
two countries and the asymmetric nature of their economies and
trade, which would also form the basis for the proposed bilateral
FTA.
During the first round of negotiations on the FTA, India made
a detailed presentation on the success of its FTA with Sri Lanka
(in operation since March 2000) and the prospects for a FTA between
Bangladesh and India. Both countries reiterated their commitment
to conclude the FTA at the earliest, reflecting the current global
sentiment on regional trade arangements (RTAs). Both sides also
initiated discussions on issues relating modalities, time frame,
negative lists, phase-out periods to zero duty and rules of origin.
Both sides discussed in detail their respective lists of NTBs
that were exchanged in mid-August this year. The recent issue
of mandatory certification by Bureau of Indian Standards (BIS)
for certain Bangladeshi products of export, notably cement, was
discussed and India offered a concessional dispensation whereby
imported clinker (the major raw material for cement) could be
certified by the Bangladesh Standards and Testing Institution
(BSTI), instead of by BIS. This would considerably reduce the
licensing period for Bangladeshi cement. Bangladesh's request
for a similar approach for a few more products would be considered
by India. As a long-term solution, both countries agreed to start
negotiations immediately for mutually recognising each other's
standards. India requested for the withdrawal of the continuing
ban on land route for a number of Indian exports, notably cotton
and other types of yarn. Bangladesh agreed to remove this ban
once the problems related to the informal trade were resolved.
India also raised the long pending application of a joint venture
promoted by Sun Pharma of India and the adverse impact this would
have on future Indian investments especially in view of the proposed
FTA. Bangladesh agreed to take this up with the authorities concerned
for early resolution.
The talks were held in a warm and cordial atmosphere reflecting
the close and friendly relationship between the two countries.
It was proposed to hold the next Joint Secretary-level Trade Talks
in Dhaka in April 2004.
