India-Bangladesh joint FTA study to be finalised soon

India and Bangladesh will soon finalize the joint study on the proposed bilateral free trade agreement, aimed to boost economic ties. The matter was discussed by two sides and agreed during the secretary level talks on Friday in New Delhi.

In what would reduce the overall logistics cost of India’s exports to Bangladesh, the two sides also agreed to put into use the railway wagons or containers by Bangladesh that currently return empty after offloading the goods.

The two also decided to strengthen regional connectivity between the two countries through multi-modal transport.

“CEPA study is to be finalized at the earliest," the ministry of commerce and industry said in a release on Saturday.

The talks were held between Commerce Secretary BVR Subrahmanyam and Bangladesh's Senior Secretary, Ministry of Commerce, Tapan Kanti Ghosh on March 4. Bangladesh is the 6th largest trade partner of India.

The two sides also held discussions on a host of issues including the development of railway infrastructure, port infrastructure, joint study on Comprehensive Economic Partnership Agreement (CEPA), Border Haats, regional connectivity through multi-modal transportation, harmonisation of standards, mutual recognition agreement.

Bangladesh is India's 5th largest export destination, accounting for 3.32% of India’s total outbound shipments in 2020-21 to $10.16bn and imported $1.09 bn worth of goods in the same year. Top exports from India to Bangladesh include cotton, cereals, fuel, vehicle parts and machinery, and mechanical appliances.

Bangladesh is India's biggest trade partner in South Asia and India is the second biggest trade partner of Bangladesh.

India and Bangladesh had decided in October last year to start talks on a comprehensive economic partnership agreement.

In order to facilitate trade, the two sides also approved a Detailed Project Proposal for developing container handling facility at Sirajganj Bazar, construction of a new 900 meter siding line at Benapole for running freight trains, completion of construction of a loading and unloading platform at Darshana for import of all commodities among others. In addition, closed Border Haats due to Covid restriction would be opened soon and 24x7 operationalization of Petrapole-Benapole Integrated Check Post (ICP) would also be implemented, the Centre said.

The CEO forum will also have the first meeting soon.