The Hindu Business Line : Bangladesh studying total gas reserves to decide on exports

BANGLADESH has clarified that per se it is not opposed to export of gas, to India or to any other country, and that it is only a question of national policy.

"The Government is now studying the total gas reserves, and a decision on exports will be taken only after satisfying ourselves on own requirements, and the exportable surplus available."

Speaking at an interactive session on India-Bangladesh trade relations, organised by the Indian Chamber of Commerce (ICC) here on Wednesday, Mr Hemayetuddin, High Commissioner of Bangladesh in India, said: "Once we establish the surplus, we may take a decision on export of gas".

On trade issues, the High Commissioner said the para-tariff and non-tariff barriers (NTBs), which hinder Indo-Bangladesh trade, would be taken up at a high level inter-governmental meeting to be held in India soon.

All trade and procedural issues, including those that hamper trade through the land customs points in Bengal, are expected to figure in the talks. Issues of cross-border smuggling and transport bottlenecks will also be taken up at the meeting.

Bangladesh will also be signing soon the FTA (free trade agreement) as per the BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, Thailand Economic Cooperation) agreement in Bangkok sometime ago.

Issues pertaining to both bilateral trade and services would be taken up at both SAARC and BIMST-EC future meets.

"We are committed to removing the time-consuming trade procedures,'' he clarified.

Stating that the SAPTA (South Asian Preferential Trade Agreement) was a big step forward, he said Bangladesh must have more duty-free concessions in trade with India by virtue of its LDC (least developed countries) status.

"We need to expand our export basket to India in a significant manner, if the yawning trade gap at present, so overwhelmingly in favour of India, has to be reduced,'' Mr Hemayetuddin said.

Some 80 per cent of Bangladesh's exports of around $80 million now go to the north-eastern region of India.

The High Commissioner also called for greater private sector initiatives through the chambers of commerce on both sides to act as an effective lobby to help ease out the procedural hassles.

Citing the growing consumer class in Bangladesh, some 40 million out of a population of 130 million or so, he said it is high time that the business communities of both sides establish person-to-person contacts to expand opportunities.

The envoy said Bangladesh is now in a position to export consumer items such as value-added leather products, ceramics, cosmetics and garments to India.

Welcoming the High Commissioner, Mr Anup Singh, President of ICC, has sought the participation of a Bangladesh trade delegation at the colloqium being organised by the chamber on March 18, in New Delhi, jointly with the Government of India, on sub-regional economic cooperation.

Pointing out that limited trade routes have been the principal barriers to trade with Bangladesh, Mr Singh said, "We now need to harmonise the customs procedures and documentation and need to encourage cross border private sector investment."

He felt there is also a need to strengthen banking and insurance norms on both sides and benchmark it against international norms.

Mr Singh said the proposed FTA between the two countries would not only provide for elimination of non-tariff barriers in a time-bound framework, but also provide an assured access to the large Indian market.

This in turn will enable Bangladesh to create export capacity for products in which it has competitive advantage but are not yet included in the export basket.

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