The New Nation - Internet Edition

THE Indian Prime Minister has assured the Chief Adviser of reducing trade gap between the two countries. He hinted at more imports from Bangladesh and removal of non-tariff barriers further. The Chief Adviser of Bangladesh called on him in New Delhi on Tuesday and requested for the same.

India is one of the biggest trade partners of Bangladesh. Machinery and industrial raw materials imported earlier from developed countries are now brought mainly from India and China. Bangladesh is reportedly one of the 10 largest importers of all goods and the third largest importer of finished products from India. According to sources, Bangladesh's present trade deficit with India is more than US$2 billion. Informal trade makes the deficit even higher.

That Indian Prime Minister gave the above assurance is a welcome gesture. Bangladesh must properly utilise the scopes that might be created. It must strengthen its own economic base of production for export. A clear assessment of what can be exported to India must be made with a view to increasing the export volume. India is a big economy and has the capacity to flood Bangladesh's market with a small percentage of its products. Bangladesh must remain alert against turning into a dumping ground.

Mechanisms must be evolved so that Bangladesh can export a sizeable quantity of its finished products to India. Bangladesh produces some specialised exportable items like Zamdani saree and Tangail saree. But due to lack of adequate patronisation, artisans and technicians in the trade are reportedly migrating to other countries including India. Bangladesh must extend necessary support to those sectors to avoid loss of comparative advantage on those products. India is also a big importer. India has assured removal of non-tariff barriers. Bangladesh should pursue the reduction of tariff barriers for allowing access to more products. All efforts must be made to see that assurance of the Indian Prime Minister is turned into action.