The Hindu : India, Bangladesh agree to pursue FTA

Online edition of India's National Newspaper
Thursday, Jul 17, 2003

International

International - India & World

India, Bangladesh agree to pursue FTA

By Haroon Habib

DHAKA July 16. The crucial Joint Economic Council (JEC) meeting between Bangladesh and India has ended with the announcement of substantial progress towards enhancing bilateral trade as the two countries agreed to initiate talks on the India-proposed Free Trade Agreement (FTA) in October next.

The two countries also decided to start a direct bus service between Dhaka and Agartala in the first week of August. If this materialises, it will be the second such land route after the Dhaka-Kolkata bus service opened in April 1999.

The agreements came following the hectic JEC meeting held on Tuesday, which was led by the Bangladesh Foreign Minister, Morshed Khan, and the External Affairs Minister, Yashwant Sinha. "We've achieved very, very positive gains at the JEC... We made very substantial progress and we will continue to remain engaged to resolve other issues between us," Mr. Sinha, who delayed his return home overnight, told a press conference here in the morning.

The press conference was preceded by the signing of a Joint Agreed Minutes by the two Ministers. Mr. Khan told journalists, "We've discussed all bilateral issues and we have achieved huge, huge gains."

It was learnt that the two countries could not reach any consensus on the crucial issue of granting transit or transhipment facilities to India to transport its goods to the north eastern States through Bangladesh territory. There has also not been any agreement on India's proposal for commissioning a passenger train service between Sealdah (Kolkata) and Jamuna Bridge.

On Bangladesh's main concern for non-tariff and para-tarriff barriers on its products by the Indian authorities, the two sides agreed to meet in mid-August and sort it out.

About Bangladesh's new list of more than 100 products for duty and quota-free access in the Indian market in a bid to reduce the trade gap of $1 billion heavily tilted towards New Delhi, Mr. Sinha said the matter would be taken up when the two sides open dialogue on FTA.

It was decided that the Foreign Secretary-level FTA standing committee would meet early next year to review the progress of the first round of talks on FTA in mid-October.

Mr. Sinha said the proposed accord on protection of bilateral investment, now under discussion, would be signed by the two countries shortly.

The meeting also decided that the Foreign Minister-level JEC would meet annually and the Foreign Secretary-level JEC standing committee every six months.

Mr. Sinha said the state-to-state credit of Rs. 200 crores earlier sanctioned for various development projects in Bangladesh would be renewed and it would continue to be extended until the credit was exhausted.

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