Transit agreement, protocol with Bhutan likely this year

Bhutan is willing to sign an agreement with Bangladesh on transit and protocol within the year, and if this deal goes forward, the much talked about Bangladesh-Bhutan-India-Nepal (BBIN) framework will get momentum after years of stagnancy.

The deal will also expedite the process of inking a Preferential Trade Agreement (PTA) to boost bilateral trade between two neighbouring nations.

This development came from a two-day commerce secretary level meeting between Bangladesh and Bhutan, held in Dhaka in the second week of September this year.

Ministry sources say the regional trade will take a new and positive turn with this protocol. The full potential of trade in the region has not been realised due to the delay in development activities.

The stakeholders are optimistic that if the BBIN initiative comes into effect, Bangladesh will witness the expansion of direct trade.

A draft of the Bangladesh-Bhutan transit agreement and protocol under BBIN has already been finalised at the secretary-level meeting. Several decisions were made regarding its implementation, especially transport cooperation through third countries and initiatives for trade facilitation.

After meeting the delegation of Bhutan, Commerce Minister Tipu Munshi said, “The signing of Bangladesh-Bhutan PTA has marked the beginning of a new era in trade. If the road connection with Bhutan is opened through a third country, there will be a great expansion in the trade and tourism sector between the two countries.

“Besides, Bangladesh has declared Saidpur Airport as a regional airport to establish air connectivity with neighbouring countries including Bhutan and the government has undertaken necessary development work for this.”

Currently, Bangladesh cannot directly export to Bhutan. During Prime Minister Sheikh Hasina’s recent visit to India, the country’s government offered free transit to Bangladesh. If this proposal is implemented, direct exports to Bhutan using Indian territories will be possible.

Commerce ministry sources said the government has become more proactive in implementing the BBIN Motor Vehicles Agreement (MVA) signed in June 2015. Under this deal, Bhutan and Bangladesh are going to implement the transit agreement and protocol.

It is also known that even though there is an MVA agreement, each country has to make a separate bilateral protocol or agreement with the other three countries. Bangladesh signed protocols with India and Nepal long ago.

After the signing of the protocol with Bhutan, there will be no barriers to regional trade.

The commerce secretary-level meeting was led by Tapan Kanti Ghosh, senior secretary of the Ministry of Commerce and Dasho Karma Tshering, secretary of the Ministry of External Affairs of Bhutan.

At the meeting, stakeholders discussed facilitating communication through third countries, as well as taking initiatives on facilitate trade and commerce, increasing mutual cooperation in the development of the tourism industry, increase mutual cooperation between Bangladesh Standards and Testing Institution (BSTI) and Bhutan Standards Bureau (BSB) as well as Department of Agricultural Extension (DAE) and Bhutan Agriculture and Food Regulatory Authority.

Besides, the nations also decided to increase mutual cooperation to remove tariff and non-tariff barriers in trade, imports and exports goods by direct transport through land ports.

In the meeting, Dasho Karma Tshering said the commercial ties between the two countries will be stronger in the coming days. According to commerce ministry sources, the already finalised draft of the Bangladesh-Bhutan transit agreement and protocol will be signed by both countries after cabinet approval from Bangladesh and parliament approval from Bhutan.

In this regard, Bhutan has proposed to sign the agreement at a ministerial level meeting of the two countries. Both countries are making all kinds of preparations to sign this agreement within November or December this year, insiders added.

If this agreement is signed, eight ports of entry in Bhutan and 15 ports of entry in Bangladesh will be opened. There will be road connectivity on five routes. There will also be two rail routes, one from Mongla and the other from Chattogram.

Besides, the opportunity to connect by air through Dhaka, Chittagong and Syedpur airports will improve. Moreover, Bhutan will be able to use Bangladesh’s Mongla and Chittagong seaports.

In such cases, tolls and related fees will be applicable as per national laws. Commerce ministry officials said the transit fee for India has already been determined. Fees may be fixed at the same rate in the case of Bhutan.

According to the draft agreement, the routes are: Thimphu-Samtse-Burimari-Bogra-Hatikumrul-Dhaka-Chattogram,Samtse-Fulbari-Banglabandha-Rangpur-Bogra-Dhaka-Chottogram, Gelephu-Tamabil-Sylhet-Dhaka, Teknaf-Cox Bazaar-Chittagong-Dhaka-Hatikamrul-Rangpur-Burimari Chengrabandha-Jaigaon-Phuentsholing-Thimphu, Mongla-Khulna- Jessore-Kushthia-Hatikamrul-Rangpur-Burimari-Chengrabandha-Jaigaon- Phuentsholing-Thimphu, and Dhaka-Tamabil-Dawki-Guwahati-Samdrup-Jongkhar-Bhutan.

Joint Secretary (FTA Wing) of Commerce Ministry Md Abdus Samad Azad said, “If this agreement is signed, it will play a major role in boosting regional communication in the coming days. Both countries will be able to transport goods directly.

“The cabinet’s approval would be taken after the internal process regarding the draft and its annexure is completed. The agreement could be signed in November or December, subject to the cabinet’s approval. It is supposed to be inked at a ministerial level meeting.”