Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Bilateral trade between India & Bangladesh gets clear headway

"The just concluded bilateral trade meet between India & Bangladesh seemes to have benefitted both countries. Bangladesh PM Sheikh Hasina raised the issue of growing trade deficit and PM Modi assured her of his government's concrete steps to address it. She believes she has secured firm promise from her India that Delhi will take concrete actions to redress the balance. Incidentally, PM Hasina reportedly raised the issue of Indian imposition of anti-dumping duties on jute imports from Bangladesh seeking to resolve the issue."

 

 

Bilateral trade between India and Bangladesh gets clear headway

 

The just concluded bilateral trade meet between India & Bangladesh seemes to have benefitted both countries. Bangladesh PM Sheikh Hasina raised the issue of growing trade deficit and PM Modi assured her of his government's concrete steps to address it. She believes she has secured firm promise from her India that Delhi will take concrete actions to redress the balance. Incidentally, PM Hasina reportedly raised the issue of Indian imposition of anti-dumping duties on jute imports from Bangladesh seeking to resolve the issue.

Anti-Dumping Duty on Jute

Bilateral trade between India and Bangladesh gets clear

 

India accounts for about 30 per cent of Bangladesh's total export of jute. In January this year, India imposed an anti-dumping duty on import of jute and jute goods from Bangladesh and Nepal ranging between $19 and $351.72 per tonne. It means the importing country believes that foreign imported goods, and in this case, jute and jute goods from Bangladesh and Nepal, are priced below fair market value. This duty has been imposed for five years. Bangladesh is in strict opposition of this. As a result, jute/jute goods exports to India have impacted adversely. During July-March period of FY2016-17, it decreased by over 17 per cent to $105.25 million as against $171.41 million in the corresponding period last year. The anti-dumping duties became effective from January 05, so the first six-month of this period, the trade was not affected.

Exports to India during July-March (FY2016-17) rose by 7.28 per cent to $522.83 million, but earnings from apparel exports decreased by 7.85 per cent to $99.99 million. According to MAKS Attire director Farkhunda Jabeen Khan, India's total apparel market is worth $40 billion and there is no threat to India from Bangladesh.

Promising sectors getting impacted

Packaged food production has recently gained prominence in Bangladesh and the country is looking at global avenues to expand reach. Despite a number of agreements signed by both Bangladesh and Indian governments in facilitating mutual efforts to enter each others' market, Bangladeshi producers are facing problems. The Indian customs authorities don't accept certification by the Bangladesh Standards and Testing Institution (BSTI) and the exporters are required to testing their products in Indian labs there. It costs time, money and ultimately customers' discontentment.

This scenario remains unchanged despite agreement between BSTI and India's NABL (National Accreditation and Calibration Laboratories) in which BSTI received accreditation for 161 parameters of 27 different products such as fruit juice, fruit drinks, jam jelly, biscuits, noodles, carbonated beverages, soap, cement, MS rod and GI pipes. On the contrary, Indian products are not facing any difficulties in entering the Bangladesh market. Industry experts are of the view that the recognition of certificates issued by BSTI by the concerned Indian agencies could aid in reducing the huge trade gap existing between the two countries.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo