India should be more liberal toward neighbours: Tofail
India should show liberal attitude toward its neighbouring countries such as Bangladesh on trade-related issues, Commerce Minister Tofail Ahmed said yesterday.
Although all Bangladeshi goods, except for tobacco and alcohol, get duty-free access to the Indian market at present, exporters are unable to reap full benefits of trade privileges for tariff and non-tariff barriers, he said.
For instance, garment, Bangladesh's main export item, is subjected to 12.5 percent countervailing duty for entry to the Indian market.
“If India is mindful of such issues, small neighbouring countries like us will be benefitted,” Ahmed said at a discussion on trade, commerce, industry and connectivity.
Bangladesh Itihas Sammilani and Kolkata-based Research Centre for Eastern and North Eastern Regional Studies jointly organised the event on cooperation between Bangladesh and India, at Bangla Academy in Dhaka.
Ahmed said he raised the issue of withdrawing the countervailing duty with his Indian counterpart Nirmala Sitharaman.
Other than that, some new barriers have been imposed, Ahmed said, while citing India's investigations into whether Bangladeshi traders have been dumping jute goods.
Ahmed went on to praise India's role in Bangladesh's liberation war. “We hope India will remain our friend as it was in the past.”
Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, said the landmark motor vehicle agreement between Bangladesh, Bhutan, India and Nepal would not be successful if restrictions on people's entry to India are not withdrawn.
He said the visas issued by the Bangladesh High Commission in India have no restriction.
The Indian nationals can enter Bangladesh from any port, whereas India specifies the port of entry in its visas for Bangladeshi nationals.
“That is not the right spirit and especially now that BBIN has been declared. BBIN will never be successful if I have to take a fresh visa to go to Tripura or Dawki in India.”
A BBIN economic zone, comprising Pachagarh-Shiliguri-Biratnagar-Funchiling, will be declared in July, said Ahmad, also a former president of the India-Bangladesh Chamber of Comm-erce and Industry.
Mustafizur Rahman, executive director of the Centre for Policy Dialogue, stressed implementation of the sub-regional accord on the movement of goods and people.
At present, the Indian traders have to pay $150 per tonne to carry goods to and from its northeastern states to the mainland.
The connectivity through Bangladesh is expected to reduce the cost by about $100 each tonne.
He suggested benefit-sharing for development of infrastructure to ensure better connectivity.
Rahman said Bangladesh gets duty-free access to developed markets as a least-developed country and the opportunity is expected to remain in the next one decade.
“This is a window of opportunity for Bangladesh to increase exports. Indian investors can invest here and take advantage of exporting from here,” he added.
In response, FBCCI President Ahmad said Indian investors are coming to Bangladesh, with the view to setting up industries and re-exporting the products back to India.
MM Akash, a professor of economics at Dhaka University, said trade activities at Bangla-desh's sea and river ports, particularly Chittagong, Narayanganj and Chandpur, will get a boost if Bangladesh, the northeast of India, Myanmar and China are connected.
“The door to exporting products at a low cost will open up for northeast India, Kunming of China, Myanmar and India. Trade among the neighbours will also rise.”
But the infrastructure and roads will have to be developed first; and faster resolution of issues such as lack of trust and political confidence will speed up the progress, he added.
Pinak Ranjan Chakravarty, former Indian high commissioner to Bangladesh, said it is indisputable that countries that are better connected succeed in the marketplace.
“Historically, we were connected. But we have destroyed that connectivity. Now we will have to re-connect.”
The share of intraregional trade in South Asia's total trade is less than 5 percent, whereas in other regional trade groupings such as the European Union and Asean it is much higher, he said.
Chakravarty went on to blame politics for the low level of intra-regional trade, while suggesting a sub-regional cooperation instead of Saarc.
“The prospect of Saarc is not very bright as Pakistan does not have an overwhelming interest in the bloc.”
Earlier at the inaugural session, Muntassir Mamoon, president of the Bangladesh Itihas Sammilani, suggested India relax the visa procedures.
Comments