Trade facilitation, transit modalities main focus in Dhaka-Thimphu talks

A commerce secretary-level meeting between Dhaka and Thimphu will be held in the capital next month to push forward issues on trade facilitation and transit modalities, a top official in the commerce ministry said.
The meeting will take place a month after Dhaka and Kathmandu complete their commerce secretary level meeting in Dhaka, slated for October 17-18.
Ahead of the meeting from November 18-19, Bhutan has sent a list of five new land customs stations for establishing in Bangladesh territory to facilitate bilateral trade with the South Asian nation, it was learnt.
‘Enhancing trade and facilitating export-import activities are our main areas of interest with Bhutan,’ Monoj Kumar Roy, additional secretary, ministry of commerce, told New Age.
‘The upcoming commerce secretary level meeting is likely to focus on transit modalities, which is also a part of trade and investment,’ Monoj said further.
Currently, export and import between Bangladesh and Bhutan take place through two LC stations – Burimari and Tamabil.
Thimpu has sought seven LC stations including the existing two for export, import and transit purposes. The proposed new stations are Moghalhat, Noonkhawa, Nakugaon, Haluaghat and Banglabandha.
Besides, commerce ministry officials said a draft agreement on cooperation on services sector is likely to be discussed during the next month’s high-level trade talks between the two countries. The issue will be finalised at the end of the current month.
‘Actually, we had wanted the inclusion of services sector in the bilateral trade agreement, which was renewed in December, last year. But, Bhutan opted for a separate agreement on the particular trade area,’ a senior trade official said.
Bhutan has long been asking Bangladesh to use the country’s Chittagong seaport, Chittagong airport, Mongla seaport and Dhaka Hazrat Shahjalal International airport for transit purpose, a commerce ministry official said.
He said after signing the motor vehicle agreement between Bangladesh, Bhutan and Nepal, the issue of broad based transit facility might be an issue for due consideration during the commerce-secretary level meeting.
Until the political leadership of Bangladesh government provides its green signal, the commerce ministry alone cannot proceed with the Bhutanese transit proposal.
Bangladesh and Bhutan had signed a transit agreement in 1980, but it did not come into effect fully due to non-cooperation from the Indian government, sources said.
Besides, the lack of any operation modality, the transit agreement between the countries could not come into full operation, a trade official said.
Bangladesh exports to Bhutan include items like ready-made garments, pharmaceuticals, melamine, toilet soap, dry food, fruit juice and mineral water. On the other hand, Bhutan exports products like fresh fruits, paper and paper boards, crushed stones, coffee and spices to Bangladesh.
The two-way commerce between Bangladesh and Bhutan has been insignificant compared to its potential. Bangladesh exported goods worth $1.91 million to land-locked Bhutan in 2013-2014 fiscal year, against its imports worth $22.50 million during the period.

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