Lift duties to cut trade deficit

Dhaka has once again called upon New Delhi to withdraw tariff, non-tariff and anti-dumping duties on shipments of goods from Bangladesh to narrow down its trade deficit with India.

The balance of bilateral trade between the two countries is heavily tilted towards India as Bangladesh's export to the neighbouring country has not increased because of the tariff, non-tariff and anti-dumping measures imposed by New Delhi.

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In fiscal 2016-17, Bangladesh imported goods worth $6.17 billion from India against its export worth $672.40 million. In the previous year, Bangladesh imported goods worth $5.46 billion, while its export to the neighbouring country stood at $689.62 million.

“There is a big trade gap between the two countries. The Indian government should remove the tariff and non-tariff barriers to help increase exports from Bangladesh,” Bangladesh Commerce Minister Tofail Ahmed said yesterday.

“I will also request our Indian friend [the Indian finance minister] to remove the anti-dumping duty on exports of jute and jute goods from Bangladesh,” he said while addressing the businesspeople of the two countries at a meeting at the Pan Pacific Sonargaon hotel in the capital.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) organised the meeting on the occasion of the visit of Indian Finance and Corporate Affairs Minister Arun Jaitley.

Export of jute and jute goods to India has come under strain because of sudden imposition of anti-dumping duty by the Indian authorities.

The existing duty on export of garment items to the Indian market is also hurting Bangladesh, Tofail said.

He appreciated the Indian government's decision to accept the testing certification by the Bangladesh Standards and Testing Institution (BSTI) for 21 products from Bangladesh. He urged India to accept BSTI certification for more products.

At the meeting, Pankaj R Patel, president of the Federation of Indian Chambers of Commerce, led 25 businesspeople from India, while Shafiul Islam Mohiuddin, FBCCI president, led the Bangladesh team.

In his speech, Jaitley didn't say whether the tariff, non-tariff and anti-dumping duties on exports of Bangladeshi goods would be removed.

The visiting minister sought greater cooperation between the two countries in some important areas.

The areas include trade of agricultural goods, railways, water and waste management, electricity, tourism, film and entertainment.

“Indian businessmen can invest in innovation, research, healthcare, IT and agriculture,” said Jaitley.

He said Bangladeshi students can immensely benefit from the world-class education system in India.

The Indian minister praised Bangladesh, and said it has become a partner of India in negotiation in most multilateral forums.

“I found Bangladesh as a nation over the last several years to have become extremely focused about its own growth.

“There have been areas where the country has rediscovered potential.”

He said Bangladesh has become a global force in textile exports, thanks to its human resources.

Jaitley arrived in Dhaka yesterday on a three-day visit. He is scheduled to meet Finance Minister AMA Muhith and visit a garment factory of Babylon Group in Dhaka today.