Nepal‚ Bangladesh to reschedule trade talks
KATHMANDU:
Nepal and Bangladesh will reschedule trade talks that were scheduled for February 23 and 24, in Kathmandu, on the request of Bangladesh government.
Following the developments of the earlier bilateral trade talks, the commerce joint secretary level talks will focus on finalising the list of products that both the countries can extend tariff preference on while exporting to each other’s country, as per Jib Raj Koirala, joint secretary of the Ministry of Commerce and Supplies (MoCS).
It is reported that Bangladesh had proposed for a free trade agreement (FTA) with Nepal. However, Nepal had clarified that it could not sign FTA with Bangladesh due to its trade treaty with India. Citing the provision of Nepal-India Treaty of Trade Koirala said, “If we sign FTA with any third country we have to unconditionally provide similar facility to India.”
Nepal and Bangladesh will come up with the list of products that are mostly exported to each other’s country for preferential treatment in terms of tariff and quantity. Both the SAARC member nations also have to trim down the sensitive lists that deal with tariff and quantity while exporting products under the South Asian Free Trade Area (SAFTA) provision.
Nepal and Bangladesh each have a long list of sensitive products. Nepal has listed 998 products under the sensitive list for least developed countries (LDCs) and 1036 products for non-LDCs. Likewise, Bangladesh has listed 987 and 993 products under sensitive list for LDCs and non-LDCs, respectively.
Besides, the bilateral talks will focus on easing sanitary and phyto-sanitary measures for exporting agriculture products to reduce technical barriers in trade. Both the countries will discuss on the transit cargo facilitation (cargo travels through 52 km in the Indian territory from Banglabandha to Kakarvitta) and each will allow the other’s currency to be used as a mode of payment in trade between the two countries, according to joint secretary Koirala.
Nepal’s trade with Bangladesh accounted for two per cent of the country’s total trade in the last fiscal. Due to limited export products to Bangladesh, Nepal is gradually losing its trade surplus with Bangladesh. Lentils, wheat, oil cakes, hide and skin, fruits and fruit juice, and vegetables are the major export items from Nepal to Bangladesh. Similarly, Nepal imports plastic utensils, metal products, sacks and bags, among others from Bangladesh.
Source: THT
