Indo-Bangla trade - old school of thought must go...

Bangladesh is unworried about trade deficit with India, saying such “old school of thought” has to make way for economic prudence of value-addition and subsequent export.

“Comparing trade balance is an old way of thinking. Bangladesh is willing to import more from India so that goods can be value-added and later exported to lucrative European and other markets,” Bangladesh’s commerce minister, Muhammad Faruk Khan said here after his meeting with Meghalaya Chief Minister Mukul Sangma.

The trade balance between the two countries is heavily tilted towards India’s favour. While Bangladesh export goods worth $ 3 million to India, its import from India is about $ 4 billion annually, the Bangladesh commerce minister said.

He added Bangladesh is willing to import goods from Meghalaya which is mineral-rich. Coal, Limestone and agro-products are some of the items Bangladesh imports from Meghalaya.

“We are buying Limestone, fruits and boulders and exporting back to India as cement, fruit juice and stone chips. Give us anything we are willing to buy for their worth,” Khan said, underlining the importance of value-addition.

On reduction of tariff and non-tariff barriers, he said, Bangladesh is also willing to remove trade barriers by modifying some of the country’s law and wants India to reciprocate the gesture.

Khan said he was willing to take matters related to law to his country’s Parliament and try removing the obstacles for bilateral growth of trade and commerce between the two countries.

“In three months time all legal hurdles would be removed to boost trade. I am willing to take the matter in the Parliament,” he stated.

With relations between the two countries improving, India has decided to favour Bangladesh by reducing customs duty on 4,800 listed Bangladeshi items, besides extending a $ 1 billion loan last year.

In March this year, two border Haats along Meghalaya’s border with Bangladesh would be re-opened since their closure from the early 70s under a pilot project. Ten more Haats would be opened after gauging the success of the two Haats.

Emphasising the need for infrastructure development and creation of new Land Custom Stations, Khan said, a task force would be formed between the two countries to give Indo-Bangla trade a new direction.