elected government, has in the last one year been on a trade promotion spree with the Indian states with which it shares the international boundary.

 

To give a fillip to trade with the neighbouring Indian state of Mizoram and to see for himself the arrangements for border trade, Bangladesh State Minister, Ministry of Chittagong Hill Tracts Dipankar Talukar along with a delegation of nine members were on a four day visit (7th – 11th December 2011) to the state. On his maiden visit, the Bangladesh Minister Dipankar Talukdar called on the State Chief Minister Lal Thanhawla on the 8th of December. They held wide-ranging discussions relating to border trade between the two countries through the state.

Welcoming the Bangladesh Minister and his team to Mizoram, Lal Thanhawla expressed his appreciation of the warm welcome and cooperation extended to them during their recent visit to Bangladesh while accompanying Prime Minister Manmohan Singh. He stated that the enthusiasm shown by the Bangladesh Prime Minister would certainly help boost future ties between the two countries. Lal Thanhawla further stated that in order for the Indo-Bangla trade to really pick up, it was vital to improve road communication. He assured the Minister that the Mizoram Government was doing its best to speed up all work on this side of the border and asked the latter to ensure the same on their side. The Chief Minister lauded Prime Minister Sheikh Hasina for her keen interest in accelerating border trade.

Dipankar Talukdar assured the Chief Minister that all formalities at their end was being finalized and that the Bangladesh Government was equally keen on starting border trade as soon as possible. He mentioned that a number of border trade points between Tripura and Bangladesh had already been started.

Mizoram Trade & Commerce Minister Lalrinliana Sailo pointed out that state farmers were exporting hatkora fruits to Bangladesh through Tripura; however, imposition of  `4 tax per fruit at the border was causing problems for them and requested the visiting Minister to look into the matter.

The trade between the two countries in the last 5 years is as follows:(Figures in US$ million)
	05-06	06-07	07-08	08-09	09-10	10-11
India's exports	1864.70	2286.00	3364.00	2841.06	3203	4586.8
India's Imports	241.96	289.42	358.08	276.58	305	512.5
Total trade	2106.70	2557.40	3722.08	3117.64	3507	5099.3
Source:Bangladesh Bank/EPB Note:FY is July to Junes

Accompanied by the Mizoram Trade & Commerce Minister Lalrinliana Sailo, Bangladesh State Minister Dipankar Talukdar and his team visited the border areas adjoining Bangladesh in southern Mizoram on 9th December.  At Tlabung (Demagiri), near the Indo-Bangladesh border the two Ministers jointly inaugurated a Border Trade Facilitation Centre, built with funds from the Union Commerce Ministry. They also unveiled the India-Bangladesh Shared Vision of Peace, Prosperity and Partnership stone at Kawrpuichhuah, the proposed border trade centre for Indo-Bangladesh trade which will also house an Integrated Check Post (ICP). They also visited Thekamukh where there will be a Land Custom Site (LSC).

Minister Talukdar and his team halted at Kamlanagar, the headquarters of the Chakma Autonomous District Council (CADC) where they were accorded a warm reception and a cultural show was held in their honour. It is noteworthy to point that in Mizoram the Chakmas, have some form of self governance in the form of Chakma Autonomous District Council (CADC) which is enshrined in the Sixth Schedule of the Constitution. The CADC enjoys a fair amount of autonomy and has executive, legislative and judiciary powers as provided by the Schedule. Chakmas are represented in the Mizoram Legislative Assembly by two MLAs – Nihar Kanti Chakma, Minister of State i/c Veterinary & Animal Husbandary, Sericulture and Disaster Management & Rehabilitation and former Minister Nirupam Chakma. Interestingly the largest tribal group in Bangladesh are the Chakmas, who are concentrated in the Chittagong Hill Tracts, where they also enjoy certain autonomy.

The landlocked Northeastern states, rich in natural resources are just next door for Bangladesh, the ninth most populous country in the world. By having robust border trade, Bangladesh can access these resources easily and in the process can accelerate its own growth and development. Similarly the Northeastern states need a market for their produce especially horticultural and agricultural products; Bangladesh provides a ready market and its ports could help export them further ahead. Bamboo from Mizoram, coal and limestone from Meghalaya, rubber from Tripura has immense export potential. Despite such potential, trade had not picked up as it should have.  The historic visit of Prime Minister Manmohan Singh along with the Chief Ministers of Assam, Meghalaya, Mizoram and Mizoram – Tarun Gogoi, Mukul Sangma, Lal Thanhawla and Manik Sarkar in September 2011 will definitely go a long way in bettering Indo-Bangla relations in various spheres.

Bangladesh has a large trade deficit with India which is offset by surpluses with other countries and just over 15 % of Bangladeshi imports come from India. Though Bangladeshi exports to India receive tariff concessions under the South Asian Free Trade Agreement (SAFTA), they account for less than 1 % of India’s total imports. Though Indian trade with Bangladesh is small in relation to India’s overall trade, the Northeastern states can maximize this trade and accrue benefits which can help boost the economies of these states which are highly dependent on Central funds. Improvements in the transport, storage and administrative infrastructure at land borders would yield substantial benefits. Greater harmonization and cooperation in customs administration and banking relationships would also be highly beneficial.

According to a recent study by the World Bank entitled ‘India-Bangladesh Trade, Trade Policies and Potential Free Trade Agreement’ the economic benefits for India from a Free Trade Agreement (FTA) would be modest since its trade with Bangladesh is small in relation to India’s overall trade. These modest gains would mostly stem from expanded exports. The study finds that India would stand to profit more from the continuation of its policies of unilateral liberalization – paying special attention to the removal of non-tariff barriers, specific duties on textiles and garments, and prohibitive tariffs on agricultural products. The report says that India and Bangladesh could still greatly benefit from cooperation in other areas, without necessarily implementing an FTA.

Progress could also be made to tackle informal and illegal trade that, by some estimates, could be as high as three quarters of recorded trade and is mostly from India to Bangladesh. The study suggests improved infrastructure at land border customs posts; streamlined customs procedures and administration; expanded facilities at smaller customs border post.

Pratap Chhetri