DHAKA: Business leaders from Bangladesh and India have agreed to push their respective governments to start containerised movement of cargo through road, rail and inland waterways to facilitate bilateral trade and investment. They also want the Dhaka-Kolkata passenger train service to start at an early date.

The agreement was reached at the first meeting of six task forces for promotion of India-Bangladesh trade and investment held here on Sunday.

The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) President, Mir Nasir Hossain, who led the Bangladesh side, told the media that "We have agreed only on the modes of transportation which can facilitate trade and investment.''

The meeting formulated a charter of recommendations on six areas of cooperation for consideration by the respective governments, particularly by a commerce minister-level meeting scheduled to be held in Kolkata on June 20.

Joint statement

B. K. Bajoria of the Federation of Indian Chambers of Commerce and Industry (FICCI) and Mir Nasir of FBCCI signed a joint statement on the recommendations.

Indian delegation leader Mr. Bajoria hoped that "bilateral trade will double in just one year if 30-40 per cent of the recommendations are implemented.''

The task forces were formed under a memorandum of understanding (MoU) signed between the FBCCI and FICCI on March 21 in New Delhi during Prime Minister Khaleda Zia's visit to India. They relate to bilateral trade, raising Indian investments in Bangladesh, trade related infrastructure, removal of trade disputes, NTBs and activating programme of Bangladesh-Indian Chamber of Commerce and Industry.

"It is an icebreaking event to start a new era in a structured way,'' Mir Nasir said, referring to the outcome of the meeting. Mr. Bajoria said the recommendations would act as a platform and definitely help increase bilateral trade and investment.

According to the joint statement, the task force on bilateral trade agreed on a FBCCI proposal to allow duty-free access of 16 Bangladeshi items to India. The items are fish and fish products, edible oil, automotive battery, ceramic products, cosmetics and toiletries, electrical copper wire, jute and jute products, melamine, leather and leather products, pharmaceuticals and footwear.

The task force on raising Indian investments in Bangladesh recommended finalisation of the Investment Protection and Promotion Treaty, single window clearance for new investment proposals in Bangladesh, setting up of industrial parks for Indian investments in Bangladesh and rationalisation of tax holidays. The task force on infrastructure suggested that the bilateral transport agreement should be reached by the two countries to facilitate the movement of vehicles for carrying goods and passengers. It also recommended infrastructure facilities in terms of warehousing, cargo handling equipment, parking, customs and immigration facilities, weigh bridges and improvement of telephone connectivity at land customs stations (LCS) on both sides of the border.

Inland water transport

It said the Petrapole-Benapole Land Customs Stations should work 24 hours and seven days a week. New LCS' might be opened up between Bangladesh and neighbouring Northeast Indian States. At present, there is no LCS in operation between Mizoram and Bangladesh. The Protocol on inland water transport (IWT) will be extended for a longer period and a joint study by India and Bangladesh to look into the potentials of improving IWT.

The task force on trade disputes recommended the formation of a panel consisting of three members from each country for resolution of trade disputes with various mechanisms. It also recommended mutual recognition of accreditation agencies, making Northeast Indian banks capable of transacting business directly with Bangladeshi banks and recognising the FBCCI and FICCI to be the nodal points for resolving the NTBs.

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