Bangladesh, Myanmar to settle issues on coastal shipping line

The eighth joint trade commission meeting between Bangladesh and Myanmar will take place in Dhaka in November, in a bid to launch a coastal shipping line between the two neighbours and discuss other business issues.

The meeting will finalise the agenda of trade between the two countries, while government officials will approve the agenda.

The coastal shipping line between Bangladesh and Myanmar was supposed to be launched much earlier, but this was not possible because of political tension in the bordering areas in recent years.

In absence of an agreement on coastal shipping, many small vessels from Myanmar illegally carry basic goods to Bangladesh through rivers and the Bay of Bengal, according to industry insiders.

“We are ready to sign some agreements with Myanmar,” said Monoj Kumar Roy, additional secretary to the commerce ministry.

Introducing a coastal shipping line between Bangladesh and Myanmar is one issue, Roy said, adding that some other issues will also be discussed.

The shipping ministry of Bangladesh has been discussing various issues of coastal shipping, such as fare and operation of small vessels, with the Myanmar government, he said.

Bangladesh will also discuss other topics like banking transactions as Myanmar's commercial banks have already opened the Asian Clearing Union (ACU) accounts with correspondent banks from the Bangladesh side, according to the report of the seventh commission meeting held in Myanmar in 2014.

Bangladesh will also discuss the import of hydroelectric power from Myanmar and cooperation in the areas of oil, gas and mineral resources between the two countries.

Bangladesh wants to import food grains from Myanmar, while Myanmar has demanded tax reduction on its export of betel nuts, dried and salted fish as it has a lot of stock of those goods and wants to export those to Bangladesh, according to the report.

SM Nurul Hoque, president of Bangladesh Myanmar Chamber of Commerce and Industry, said a delegation of the chamber is in Chittagong to discuss different issues with the business community.

“If the agreement on the coastal shipping line is signed, business between the two countries will be easier,” Hoque said. Bangladesh imports spices, lentil, fish, onion, garlic and ginger from Myanmar at cheaper prices, he added.

Myanmar is rich in wood; once the coastal shipping line agreement is in place, Bangladesh can import wood from this country to meet the demand of the local furniture sector, he said.

“Myanmar is a land of opportunity for us with the return of a democratic government. We can export a lot of clothing items to Myanmar."

Customers of Myanmar buy garment items made in Bangladesh from Thailand, he said. If formal trade with Myanmar is launched, Bangladesh can directly send apparel items to Myanmar, he said.