Home ›› 08 Sep 2022 ›› Front
India has offered Bangladesh the use of their territories for exporting goods to Nepal and Bhutan, and Bangladesh will not have to pay anything to get the facility.
The Export Promotion Bureau (EPB) data shows that Bangladesh exported goods worth $9.5 million to Bhutan, and $106 million to Nepal in FY22. These figures were around $7 million and $69 million in FY21 respectively.
On the matter, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammd Hatem said, “There are huge opportunities for us in Bhutan and Nepal markets.
“But these countries are landlocked, excluding the use of Indian territory, we only have the airways to export goods, which is significantly costly compared to other options. If we are able to use the Indian territories, bilateral trade with Bhutan and Nepal will improve dramatically.”
According to a joint statement issued during Sheikh Hasina’s India visit, the neighbouring country has offered free transit via its territory to Bangladesh for exporting its products to other destinations through specified Land customs stations, airports and seaports.
Commenting on the issue, Dhaka University International Relations Department Professor Imtiaz Ahmed said, “It is positive news not only for Bangladesh, but for South Asia as well. But we have yet to get the details about this initiative.
“Before signing any agreement, we have to ensure that there are not any non-traditional barriers and Bangladesh will benefit from the deal. Co-operation is maintained through practice, and Bangladesh always practices cooperation.
“But we have to think about the motive behind this proposal.”
In recent years, Nepalese and Bhutan government officials visited Bangladesh and showed interest in using Bangladesh’s territories to do business. They also sought to increase bilateral trade.
In this regard, Bhutan signed a Preferential Trade Agreement (PTA) with Bangladesh in 2021, while another agreement with Nepal is on the cards.
As the matter involves Indian territories, the process did not get momentum. This is why the respective governments and industry leaders of Bangladesh, Bhutan and Nepal had sought transit permission from India.
Research and Policy Integration for Development (RAPID) Chairman Mohammad Abdur Razzaque said, “Thanks to India for finally offering the transit facility to Bangladesh.
“However, many agreements have been signed in the past, but few witnessed the light of day. So, we have to make a serious effort to ensure this agreement comes to fruition. Besides, we must analyse whether the deal offered by India has any pre-conditions or not.”
