This means, containers ferrying goods from Nepal to Bangladesh need no visa to enter Banglabandh. The facility, however, will not come into instant effect because Bangladesh needs to incorporate the facility in the standard operating procedures that it is negotiating with India. [break]
But because both Bangladesh and India, through which Nepali containers need to pass to enter Banglabandh, have agreed to provide simplified transit operating and entry facility, officials are hopeful of the facility coming into place soon.
The two countries reached such agreement during the Commerce Secretary level trade and transit talks held in Dhaka last week.
Bangladesh has also approved Nepal´s request to allow Nepali trucks and containers ferry up to its port for the third country trade. To get access to the port, the Nepali operators would need Bangladeshi visa and vehicles operating permit though.
“We finalized the transit modality during the talks, paving way for the smooth movement of cargoes to Bangladesh and also up to Mangla port for third country trade,” said Commerce Secretary Purushottam Ojha.
He further told myrepublica.com that Bangladesh has also okayed Nepal´s proposal to provide on arrival visa for Nepali nationals. Nepal is already granting such facility to Bangladeshi nationals.
The two sides, however, failed to make any breakthrough on duty concessions, something which both Nepali and Bangladeshi traders were seeking for giving new impetus to bilateral trade.
Despite having substantial trading potential and geographical proximity, the annual bilateral trade volume remains very low due to high tariff protections. In 2008/09, Nepal-Bangladesh trade was valued mere at Rs 5.14 billion. It was barely 10 percent of the total trade that Nepal conducts in the South Asian region.
To do away with this dismal trading picture, Nepal had exchanged a list of 146 items seeking elimination of tariffs on some and meaningful reduction of duties on others. The list mainly includes agricultural produces, fast moving consumer goods, beer and other manufacturing products.
Bangladesh currently imposes customs duty of up to 40 percent on agricultural products, which form the biggest chunk of Nepal´s exports.
Bangladesh too had forwarded a list of 184 items, seeking facility in reciprocal terms.
“We decided to negotiate on the duty facility at the technical level of joint secretary yet again,” said Ojha. He informed that the technical team would meet before December this year and identify products on which the two sides can meaningfully cut duty to promote bilateral trade.
The two sides also agreed to participate in trade fairs organized in either of the countries to disseminate information on products, hold private-private talks and build business ties.
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