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Six task forces of Indian and Bangladesh business leaders have agreed to
influence their respective governments to allow containerized movement of cargo
through road, rail and inland waterways to boost bilateral trade and
investment. They also agreed to demand Dhaka-Kolkata passenger train service.
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) and
Federation of Indian Chambers of Commerce and Industry (FICCI) have been
working to create a charter of recommendations on six areas of cooperation and
will present the ideas to a commerce minister-level meeting scheduled in
Kolkata on June 20. Both groups say that bilateral trade will double in one
year if 30-40% of the recommendations are accepted and implemented.
The task forces were formed after FBCCI and FICCI signed a memorandum of
understanding (MoU) during Prime Minister Khaleda
Zia's lackluster visit to India. They decided to focus on bilateral trade,
raising Indian investments in Bangladesh, trade related infrastructure, removal
of trade disputes, non-tariff barriers (NTB), and encouraging interaction
between Bangladesh-Indian Commerce and Industry Chambers.
The task force on Trade agreed on a list of 16 Bangladeshi products that can
be allowed in India without custom levies. The items are fish and fish
products, edible oil, automotive battery, ceramic products, cosmetics and
toiletries, electrical copper wire, jute and jute products, melamine, leather
and leather products, pharmaceuticals and footwear.
The task force on raising Indian investments in Bangladesh recommended several
measures such as finalization of the Investment Protection and Promotion
Treaty, single window clearance for new investment proposals in Bangladesh,
setting up of industrial parks for Indian investments in Bangladesh, and
rationalization of tax holidays.
The task force on infrastructure recommended that the Governments reach
bilateral transport agreements to facilitate the movement of vehicles for
carrying goods and passengers. It also recommended improved infrastructure
facilities such as warehousing, cargo handling equipment, parking, customs and
immigration facilities, weigh bridges, and better telephone connectivity at
land customs stations (LCS) on both sides of the border.
It is not clear whether they agreed on Bangladesh providing transiting
facility for Indian trucks to reach the North Eastern states. This was a key
issue between the two nations and an agreement with Bangladesh will cut down
running time greatly and also enhance India’s mainland access to the North
Eastern states.
To improve inland water transportation, the task force recommended that the
Petrapole - Benapole Land Customs Stations work 24X7 and new LCS be opened
between Bangladesh and all neighboring Northeast Indian States—a new one with
Mizoram was recommended. The task force proposed the extension of the Protocol
on Inland Water Transport (IWT) till an improved version is available by a
joint study by India and Bangladesh.
The task force on trade disputes recommended an appellate body with 3 members
from each country for resolution of trade disputes with various mechanisms. It
also recommended mutual recognition of accreditation agencies, allowing
Northeast Indian banks to transact business directly with Bangladeshi banks,
and recognizing that FBCCI and FICCI to be the nodal points for resolving the
NTBs.
Overall, the recommendations of the task forces are very encouraging to better
bilateral relationship which should not be at the low level that it is in. By
focusing on trade, investments, and economic relationship, the countries can
build political capital and learn to trust each other to solve more contentious
border and water sharing issues.
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