KATHMANDU, May 27: Nepali and Bangladeshi officials are convening in Dhaka on Thursday for trade talks, during which the two sides will discuss establishing a preferential bilateral trading arrangement and simplifying movements of goods in respective markets.
"The talks will revolve around duty concessions and establishing connectivity - two crucial issues that need serious attention if we are to give impetus to bilateral trade," Surya Silwal, joint secretary and leader of the Nepali trade team, told Republica prior to leaving for Dhaka. [break]
Bangladesh is Nepal´s second largest trading partner in South Asia, but bilateral trade is restricted by a heavy tariff barrier. For instance, Bangladesh imposes a customs duty of up to 40 percent on agricultural produces - the main export items of Nepal.
Traders said the high duty structure has largely deterred Nepali exports. The government, meanwhile, has requested Bangladesh provide a duty-free entry facility to 140 groups of Nepali commodities.
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"During the talks, Nepal will mainly push for the duty-free facility for its agricultural and agro-based commodities in Bangladesh," said a source.
However, the Nepali team will have no option but to deny Bangladesh a similar facility that it has sought for its manufactured goods, such as cement, machinery and transformers.
The denial comes as a result of the fact that a Nepal-India bilateral trade treaty restricts Nepal from extending more facility to other countries than what it gives to India. And Nepal has not extended its duty free facility to the Indian manufactured goods.
"So, our efforts will be to get the duty free facility for agricultural goods by offering Bangladesh a facility close to what we extend to India," said a source.
The officials will also discuss various mechanisms for allowing entry of Nepali goods carriers in Bangladesh, so that the country could utilize Mangla Port, which Bangladesh has offered to it for the third country trade.
Apart from up to Mangla Port, Nepal has also requested Bangladesh allow its goods carriers to move in the major cities as well.
Presently, Nepali vehicles are allowed to move up to a dry port in Banglabandh, which is situated around 1 kilometer inside the Bangladeshi side of the border. But Indian customs do not allow Nepali vehicles to cross through the border. This has prevented Nepal from making use of the facility.
Sources stated that existing problems along the Kakarbhitta-Phulbari-Banglabandh transit route, which involve Nepal, India and Bangladesh, could be addressed only through tripartite talks.
Nonetheless, in Thursday´s talks the two sides will focus on further developing the land route.
They will also talk about connecting the Rohalpur-Singhbad railways network between Bangladesh and India to Birgunj dry port in Nepal. Traders have argued that should this railway connectivity be established, it would ease bilateral trade greatly.
