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Dhaka to take tough stand on trade issues with Delhi

Black_cats

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Dhaka to take tough stand on trade issues with Delhi

SYFUL ISLAM and REZAUL KARIM | Published: March 08, 2021 08:08:13 | Updated: March 08, 2021 08:49:43

Dhaka to take tough stand on trade issues with Delhi




Bangladesh is set to take an aggressive stance while discussing two major trade-related pending issues at the commerce secretary-level meeting with India, scheduled for today (Monday) in Dhaka, officials said.

The issues are India's newly introduced customs rules and anti-dumping duty (ADD).

Bangladesh is putting the new Indian customs rules on top of the meeting agenda, followed by imposition of anti-dumping and countervailing duties on several Bangladeshi items, said the officials.

Following the formulation of such rules, Dhaka on several occasions in the recent past has voiced its concern over the adverse impact of the same on the country's exports to the neighbouring giant market. India is yet to pay any heed to Bangladesh's worries.

The harmonisation of standards and mutual recognition of standards, cooperation under different common regional forum, facilitation of trade by removing non-tariff barriers and, import and export restrictions will also govern the meeting.

A joint study on the signing of a Comprehensive Economic Partnership Agreement (CEPA) between the two countries, enhancing the number of border haats (markets) and volume of trade through such haats, and expansion of port facilities are also on the agenda.

Trade officials in Dhaka said that New Delhi in September last framed the Customs Rules-2020, which is now administering the rules of origin under all trade agreements signed by India.

The new rules have made getting tariff preference in the Indian market tougher for the countries having preferential deals with it, they added.

Bangladesh is supposed to enjoy tariff preferences in the Indian market under the regional pacts like South Asian Free Trade Area (SAFTA), Asia Pacific Trade Agreement (APTA), and also the duty-free and quota-free scheme of the World Trade Organisation (WTO).

However, the new Indian rules contradict the rules of origin criteria of those pacts, creating a new barrier for Bangladesh to avail of the existing preferences in the Indian market.

Presently, the Indian anti-dumping and countervailing duties are applicable to export of at least three Bangladeshi items -- jute goods, hydrogen peroxide, and fishing net.

India slapped the ADD on Bangladesh's jute yarn, hessian and bags, ranging between US$19 and $352 per tonne, in January 2017.

A similar duty, ranging between $27.81 and $91.47 per tonne, was also imposed on export of hydrogen peroxide to India from Bangladesh in April 2017.

In 2018, India also put anti-dumping duty, $2.69 per kilogramme, on fishing net, exported from Bangladesh to its domestic market.

Bangladesh failed to get the duties removed despite scores of consultations with India for years.

A senior commerce ministry official said India always brands anti-dumping issue as a quasi-judicial matter and do not want to resolve it through discussion.

This is seriously hampering the export of Bangladesh's jute goods, hydrogen peroxide, and fishing net there, he said.

Data show that Bangladesh exported goods worth US$1.09 billion to India and imported goods worth $5.77 billion in the fiscal year 2019-20.

The trade gap between the two countries is widening every year and may further enlarge due to the new customs rules, said the commerce ministry official.

syful-islam@outlook.com
rezamumu@gmail.com

 

Bilal9

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This CEPA (Comprehensive Economic Partnership Agreement) is new Indian trick to counteract Chinese economic partnerships with Bangladesh. I fail to see how it will improve Bangladesh' trade prospects and or interests in Indian market. Feel free to refute my points.

Border Hats are another Indian ploy to sell garbage Indian goods to Bangladesh (mostly FMCG items). India only in it for India's interests.

Port facilities - India should be told a hard cold "NO".

We develop port facilities spending Billions of Dollars, and they are not for free use by India, which seems to be the Baboo attitude in New Delhi.

These Baboos and Banyas need to be taught some hard lessons.
 

Homo Sapiens

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Dhaka to take tough stand on trade issues with Delhi
Only negotiating in table will not bear fruits with Indians. They will promise a lot of things in the meeting but will do exactly the opposite later. We have plenty of such example in the past. Baniya will resort to any malpractice as long as they think can get way without any consequence. Last year, our businessmen showed how to deal with these two faced snakes. After initial lockdown was relaxed in June 2020, it was decided that both Indian and Bangladeshi truck will cross border with their goods. But Mamata Banerjee decided to act tough and denied entry of Bangladeshi trucks with export goods while Indian trucks with imports continued to enter into Bangladesh unhindered. Bangladeshi exporters repeatedly urged Indian authorities to end that discriminatory practice but without any avail. So, after sometimes they enforced a blockade on the Indian trucks from entering into Bangladesh at the land ports. Now as Indian businessmen started to face economic losses, they themselves created pressure on Mamata Banerjee to lift ban on Bangladeshi trucks! So she had to open the gate.


This is the way to deal with the baniya. Always extract cost to make him behave ethically.
 
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Atlas

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Tough decision my foot. We must change our destination to other Muslim nations like Indonesia, Pakistan, Turkey , Malaysia alongside China.

No agreement with India should be made. India always sign agreement to break it later.

Let them do whatever they want. Just put high duty on Indian goods.

We will see if Indians care about 170 million market or not.
 

GHALIB

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Tough decision my foot. We must change our destination to other Muslim nations like Indonesia, Pakistan, Turkey , Malaysia alongside China.

No agreement with India should be made. India always sign agreement to break it later.

Let them do whatever they want. Just put high duty on Indian goods.

We will see if Indians care about 170 million market or not.
170 million market is hardly 20 mln middle class worth any value .
 

Bilal9

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170 million market is hardly 20 mln middle class worth any value .
:lol:

Your guys from Ashok Leyland, Tata, Bajaj and Hero are here assembling locally, they sunk cold hard cash worth billions in operations here, which they would not if the prospects are as meagre as you state.

This is just the tip of the iceberg.

What do they know that you don't? 8-)
 

Valar.

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Data show that Bangladesh exported goods worth US$1.09 billion to India and imported goods worth $5.77 billion in the fiscal year 2019-20.
If I remember correctly, before last fiscal year, Bangladesh' imports from India were 8+ billion dollars, which is now reduced to 5.77 billion dollars. Improvement ;) Even if it's due to Corona, its still good.
 

Bilal9

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why do they want your ports?
Mainly to connect their land locked seven sisters states to import/export stuff I guess so they can industrialize. And secondly so Indians can feed these people their own garbage FMCG products and create markets.

They've been trying all kinds of schemes and tricks over the last three decades for 'transit'. But they don't want to hardly pay for it. Plus it is a security risk to let Indian trucks pass through Bangladesh. It's like letting India take their trucks to Afghanistan through Pakistan.

But the seven sisters defy any sort of industrialization.

The locals in those areas would do just fine if they are supplying Bangladesh industry with raw materials like lumber, cement clinker and agri products, to name a few items. And Bangladesh can supply their FMCG needs just fine, it is a rather small market.

They really do not need port access.
If I remember correctly, before last fiscal year, Bangladesh' imports from India were 8+ billion dollars, which is now reduced to 5.77 billion dollars. Improvement ;) Even if it's due to Corona, its still good.
What you see are official figures. There is a lot more coming in via smuggling route. Almost as much again, if not more.

Indians are diehard blocking our exports to their market every way they know how.

On the one hand they claim to be a superpower. But their actions on trade are petty and non-farsighted. Some of the Indian posters here have talked about a Schengen arrangement which is a joke. Indian Trade actions are more suited to a smaller country than Bangladesh.

This is what the fracas is all about.
 
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They've been trying all kinds of schemes and tricks over the last three decades for 'transit'. But they don't want to hardly pay for it.
so they want Bangladesh to pay for this transit stuff? i dont see the point in doing it. you guys can trade with the North East states just fine with the current setup. why doesnt India just make their highways and railroads to the NorthEast through the Chicken's Neck corridor?
 

Bilal9

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so they want Bangladesh to pay for this transit stuff? i dont see the point in doing it. you guys can trade with the North East states just fine with the current setup. why doesnt India just make their highways and railroads to the NorthEast through the Chicken's Neck corridor?
Because making their own highways and railroads to the NorthEast through the Chicken's Neck corridor will cost humongous amounts of money. Kanjoosi is at the root of all Indian behavior especially MOFA Mofos...

To connect Kolkata through siliguri, chicken's neck and then through Assam is going to cost them a lot.

While if they can get transit through Bangladesh, it cuts time in half, they can pay next to nothing (which they always do) AND ruin our roads with their ugly overloaded trucks.
 
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it sounds to me like you are part of all these regional trade blocs, but they are dominated by India, so all the smaller players like Bangladesh have to toe India's line. i think best way to have a bigger hand is to either be part of a bigger trade bloc (maybe one that has China in it) and/or be part of a political bloc that is big enough to put their own trade tariff pressure on India when it plays dirty tricks on one of its members like Bangladesh.

But Mamta didi decided to act tough and denied entry of Bangladeshi truck laden with export goods while Indian truck with imports continued to enter into Bangladesh unhindered. Bangladeshi exporters repeatedly urged Indian authorities to end that discriminatory practice but without any avail. So, after sometimes they enforced a blockade on the Indian trucks from entering into Bangladesh at the land ports. Now as Indian businessmen started to face economic losses, they themselves created pressure on Mamta Banerjee to lift ban on Bangladeshi trucks! So she had to open the gate.
what is Mamta Banerjee's problem with Bangladesh? why is she acting like this?
 

Bilal9

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it sounds to me like you are part of all these regional trade blocs, but they are dominated by India, so all the smaller players like Bangladesh have to toe India's line. i think best way to have a bigger hand is to either be part of a bigger trade bloc (maybe one that has China in it) and/or be part of a political bloc that is big enough to put their own trade tariff pressure on India when it plays dirty tricks on one of its members like Bangladesh.
These are excellent suggestions and Bangladesh Foreign Ministry is following up on some of these larger trade bloc memberships that includes China. Bangladeshi products have zero tariff access to China market by the way - which is huge.

That is unthinkable for a narrow-minded entity like India unfortunately.
 

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