New Delhi assured Dhaka of considering finding out a mechanism for continuation of duty-free and quota-free (DFQF) access of goods to its market even after Bangladesh graduates to upper level from the poor countries' club.
At the same time, Delhi urged Dhaka to quickly complete a joint study on Comprehensive Economic Partnership Agreement (CEPA) and advance towards conclusion of the deal, which might be an option to accommodate DFQF for Bangladeshi products.
These were discussed at the Bangladesh-India commerce secretary-level meeting, held in New Delhi last week, officials said.
In the meeting, Dhaka said since many countries and blocs assured continuation of DFQF facility for Bangladeshi goods in the post-LDC (least developed country) era, India can also consider the same as a major trading partner.
"Let us decide what the mechanism can be to continue the facility," the Indian officials were quoted as saying.
A senior commerce ministry official, who attended the meeting, told the FE that the Indian side felt that Bangladesh should not fall in the risk of being derailed from its growth trajectory after the graduation and losing trade preferences.
They said the joint study on CEPA between Bangladesh and India is underway, and if possible, the DFQF trade preference can be accommodated in the agreement.
"They want to include it in any legal mechanism. They think it can be better accommodated in CEPA."
He noted that Bangladesh Foreign Trade Institute (BFTI) had meetings with the Indian side on draft CEPA study between February 23 and February 25.
Now the report will be modified according to the meeting discussions, and it will go to the CEPA advisory committee for further advancement.
"Both the sides agreed that quick conclusion of the study is necessary," the trade official added.
At the meeting, Dhaka also raised the issue of removing anti-dumping duty on Bangladeshi jute goods, hydrogen peroxide, and fishing net.
Bangladesh side opined that the tenure of anti-dumping duty should not be extended through the ongoing sunset review. Bangladesh's commerce secretary also had a meeting with the Indian finance secretary, where he made the same request. Dhaka also raised the issue of Indian Customs Rules, which create a big barrier for Bangladeshi exportables to enter Indian market.
On the other hand, Indian side wanted Bangladesh to allow entrance of all kinds of goods (except a few - to be added in the negative list) through at least one border customs station in each of its northern state.
Bangladesh side replied that allowing all products by this way would not facilitate trade, unless there are testing facilities, warehouses, roads, and customs facilities in every border station.
Rather, permission is given for goods to enter India on the basis of facilities available in the land ports.
