Bangladesh, India free trade pact on the cards
Bangladesh and India have agreed to begin negotiations for a free trade agreement soon to boost two-way commerce and investments between the countries.
The development comes after Commerce Minister Tipu Munshi met his Indian counterpart Piyush Goyal on Thursday (22 December), reports Live Mint.
After the two countries agreed to look into the possibility of making a trade deal, they worked together on a feasibility study called the Comprehensive Economic Partnership Agreement (CEPA).
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"Study confirmed the CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries... Both sides agreed to start the CEPA discussions at an early date," reads an official statement issued by Indian commerce ministry.
In such an agreement, the two countries either significantly reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they ease norms for promoting trade in services and attracting investments.
The bilateral trade between Bangladesh and India increased to USD 18.2 billion (USD 16.2 billion in exports and USD 2 billion in imports) in 2021–22, as against USD 10.8 billion in 2020–21, Live Mint reported, citing PTI.
"Further, both sides agreed that CEPA will create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh," it added.
The two ministers also discussed various issues of mutual interest, including the removal of non-tariff barriers and port restrictions, re-opening of border haats, harmonization and mutual recognition of standards and procedures on both sides, settlement of trade in Indian rupees, strengthening connectivity and trade infrastructure.
Both Bangladesh and India agreed to work together to solve the problems that came up during the meeting and to make sure that the goals set out in the Joint Statement from September by Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi are met as soon as possible in letter and spirit.
