Greater transportation integration

THE bilateral trade agreement that has existed between Bangladesh and India since March 28, 1972 is being modified so that Bangladesh can use Indian road, rail and waterways for transporting goods to Nepal and Bhutan; and India can send goods to Myanmar through Bangladesh. This also means Bhutan, Nepal and Myanmar may take advantage of transporting goods over the territories of these two nations. Given the length of the term period, it is hoped that the movement of goods over land will be greatly facilitated and commerce will receive a significant boost in the region. 

The real work will begin when member countries iron out terms both bilaterally and multilaterally, i.e. the fixation of road tariffs for foreign trucks travelling over Bangladesh territory using the specified Indian land corridor and vice-versa. Although the agreement has been in force for nearly three and a half decades (since 1972), bilateral trade between Bangladesh and India is skewed negatively towards the latter. It is estimated that import by Bangladesh over formal channels is about US$5billion and another $5billion is transacted through the informal sector. It is hoped that the revised deal would allow easier access for Bangladeshi products to enter the Indian market and beyond to somewhat redress this trade imbalance. Additionally, allowing foreign goods-laden trucks to use specific routes as detailed in the agreement should bring in significant revenue earnings for the national exchequer.