More talks needed to boost trade with India

Commerce Minister Tipu Munshi yesterday called for more discussions between Bangladesh and India on removing various non-tariff barriers to boost bilateral trade.

"Steps will be taken to remove the trade barriers through discussions," he said.

Currently, there is an ample opportunity to boost trade by removing the barriers, according to a statement from the commerce ministry.

It is also possible to increase bilateral trade between the two countries by improving the customs facilities in bordering areas.

The commerce minister made these comments during a meeting with the Indian High Commissioner to Bangladesh Vikram K Doraiswami at the secretariat in Dhaka.

Doraiswami said a new opportunity to boost trade between Bangladesh and India has opened up by the construction of a bridge in Ramgarh point, a bordering area.

It is possible to facilitate bilateral trade by setting up customs and immigration offices at this point, the Indian envoy said.

The people of this area, including the Indian state of Tripura, would benefit as a result. So, the necessary measures should be taken to set up customs and immigration offices at the Ramgarh bordering areas, Doraiswami added.

In fiscal 2019-2020, Bangladesh exported goods worth $1.09 billion and imported goods worth $5.77 billion, the data from the commerce ministry shows.

Although India has allowed duty-free access for all Bangladeshi goods, except some 25 alcoholic beverages, the exporters cannot utilise the benefit due to some non-tariff barriers.

For instance, the acceptance of mutual certification on the export of food items is still on a very limited scale. As a result, the volume of food items exported to Indian markets is very low.

Besides, the local jute goods exporters have been facing challenges to make shipments to Indian markets because of the anti-dumping duty imposed on the imports of Bangladeshi jute goods.

There are many other non-tariff barriers, such as the lack of adequate banking facilities, warehousing facilities and testing labs in the bordering areas as well as road and transportation challenges.

Many traders also complain about countervailing duty on shipments of garment items to Indian markets even though they enjoy the zero-duty benefit on apparel exports to India.

If all those barriers are removed through bilateral consultation, the shipment of goods from Bangladesh will grow faster, exporters said.