India, Bangladesh ink trade deals

India and Bangladesh today signed two agreements to further cement their trade and investment ties as External Affairs Minister Pranab Mukherjee hailed the recent upward swing in bilateral relations.

Mukherjee and Bangladesh Industry Minister Dilip Barua inked the Bilateral Investment Promotion and Protection Agreement which is expected to help a large number of Indian firms working on various turnkey projects here.

The Indian minister and Bangladesh Commerce Minister Mohammad Farukh Khan signed a trade agreement to boost bilateral commerce, which amounted to $3.631 billion for 2007-08.

Mukherjee said India-Bangladesh relations had witnessed an upward swing in the recent past.

“We, on our part, have tried to sustain this engagement by taking several important steps, including unilateral gestures towards Bangladesh,” he said.

He said he was aware of the trade imbalances between the two countries and the two sides would soon convene a meeting of the Joint

Commission to discuss the matter and set targets for the future.

Mukherjee said he had sought from Bangladesh government a list of items on which it was interested in increasing trade. “I have requested (the Bangladeshi side) to give me a list on which Bangladesh government is interested so that we can further prune the negative list.”

Mukherjee noted that India had removed tariff barriers on a number of items and unilaterally declared that it would allow export of a large number of items without any duty from the Least Developed Countries, including Bangladesh.

He said India remained committed to support Bangladesh in its hour of need. “We have readily provided Bangladesh aid and assistance to help it overcome the damage caused by some of the worst natural disasters in recent years.

“These included cash assistance of $10 million, supply of food aid consisting of essential items including rice and milk powder of a total value of nearly $40 million.”

Mukherjee pointed out that India had sent an emergency relief package of essential commodities in the aftermath of cyclone Sidr in November 2007.

“We have already delivered 500,000 tonnes of rice waiving ban on export,” he said.

Among other gestures designed to build trust and mutual confidence, include allowing Bangladesh to export 8 million pieces of readymade garments to India duty-free, lifting the ban on FDI from Bangladesh, providing duty-free access to several items and pruning the sensitive list for promoting exports from Bangladesh to India, he said.

“Needless to add, India, as a friendly neighbour, always remains committed to supporting the people and strengthening its relations with Bangladesh,” Mukherjee said.

Both countries are also undertaking several initiatives to improve the trade infrastructure, including Land Customs Stations, Road, Rail and riverine routes to help facilitate greater economic engagement, he said.