India, Bangla ink trade deals; Pranab hails improving ties

Sagar Kulkarni

Dhaka, Feb 9 (PTI) India and Bangladesh Monday signed two
agreements to further cement their trade and investment ties
as External Affairs Minister Pranab Mukherjee hailed the
recent upward swing in bilateral relations.

Mukherjee and Bangladesh Industry Minister Dilip Barua
inked the Bilateral Investment Promotion and Protection
Agreement which is expected to help a large number of Indian
firms working on various turnkey projects here.

The Indian Minister and Bangladesh Commerce Minister
Mohammad Farukh Khan signed a Trade Agreement to further boost
bilateral commerce which amounted to USD 3.631 billion for
2007-08.

Mukherjee said India-Bangladesh relations have witnessed
an upward swing in the recent past.

"We, on our part, have tried to sustain this engagement
by taking several important steps, including unilateral
gestures to Bangladesh," he said.

He said he was aware of the trade imbalances between the
two countries and the two sides would soon convene a meeting
of the Joint Commission to discuss the matter and set targets
for the future.

Mukherjee said he had sought from Bangladesh government a
list of items on which it is interested in increasing trade.

"I have requested (the Bangladeshi side) to give me a
list on which Bangladesh government is interested so that we
can further prune the negative list."

Mukherjee noted that India had removed tariff barriers on
a number of items and unilaterally declared that it would
allow export of a large number of items without any duty from
the Least Developed Countries, including Bangladesh.

He said India remained committed to support Bangladesh in
its hour of need. "We have readily provided Bangladesh aid and
assistance to help it overcome the damage caused by some of
the worst natural disasters in recent years.

"These included cash assistance of USD 10 million, supply
of food aid consisting of essential items including rice and
milk powder of a total value of nearly USD 40 million."

Mukherjee pointed out that India had sent an emergency
relief package of essential commodities in the aftermath of
cyclone Sidr in November 2007. "We have already delivered the
five lakh tonnes of rice waiving ban on export," he said.

Among other gestures designed to build trust and mutual
confidence include allowing Bangladesh to export eight
million pieces of readymade garments to India duty-free,
lifting the ban on FDI from Bangladesh, providing duty-free
access to several items and pruning the sensitive list for
promoting exports from Bangladesh to India, he said.

"Needless to add, India, as a friendly neighbour, always
remains committed to supporting the people and strengthening
its relations with Bangladesh," Mukherjee said.

Both countries are also undertaking several initiatives
to improve the trade infrastructure, including Land Customs
Stations, Road, Rail and riverine routes to help facilitate
greater economic engagement, he said. PTI SKU
SAK