Indian Export: Bangladesh to lift restrictions at land ports before CEPA negotiation, says official

Bangladesh is set to give way to the Indian proposal of turning down restrictions across the land ports of the country to allow Indian exports.

“The National Board of Revenue (NBR) is working on this matter”, an official of the commerce ministry who accompanied Commerce Minister Tipu Munshi on his trip to India, said.

Dhaka is also considering Indian expectations that various duty issues be resolved over New Delhi’s shipment. There are a total of 17 land ports between the two neighbouring countries.

Munshi’s two-day trip to New Delhi ended on December 23 that was centered around negotiations with his Indian counterpart Shri Piyush Goyal over the proposed India-Bangladesh Comprehensive Economic Partnership Agreement (CEPA). The proposed deal plans to harmonise the countries’ trade rules, increase cooperation in developing cross-border transportation infrastructure and lay the groundwork for future bilateral trade pacts.

Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food, and Public Distribution and Textiles, Government of India held a meeting with Tipu Munshi, on December 23.

The last meeting between the Commerce Ministers of the two countries was held in Dhaka in September 2018.

Tipu Mushi will hold a press conference on Tuesday at the commerce ministry to let the journalists know about his trip outcome.

An official of the commerce ministry, requesting anonymity, said, the Indian counterpart is yet to start formal negotiations on CEPA. They (India) are now working on trade relaxation for Bangladeshi businessmen and estimating how much gain they can have from such a pact.

The official also thinks that the Indian commerce and industries ministry is now preparing an Indian stand on CEPA. Bangladesh commerce ministry already formed a committee headed by the additional secretary of FTA wing Mahbub Noor for negotiations about CEPA.

The Indian Commerce and Industries ministry wants to sign a mutual recognition of trading products between these two next-door countries. They have already sent a mutual recognition proposal, the official pointed out.

Regarding import of a few farm products from India to meet Bangladesh’s local demand during Ramadan, he said India will consider the matter.

In June, Bangladesh’s central bank projected a trade deficit of $33 billion due to growing imports and falling exports and remittances.

The trade imbalance has fueled inflation, with Bangladesh’s consumer price index hitting 8.85% in November, 2.87 percentage points higher than the same time last year.

In response, Bangladesh has aggressively pursued foreign investment and trade deals with India and other major trading partners such as China, Saudi Arabia and the U.S.A. The Bangladesh government will likely promote CEPA negotiations as a proof of Bangladesh’s commitment to closer relations with India.