BANGLADESH’S exports to India are not rising much despite vigorous efforts in recent years to reduce the huge bilateral trade gap between the two countries. The two countries are going to renew the existing bilateral trade agreement to be signed during Indian Prime Minister Narendra Modi’s visit to Dhaka. But question arises whether or not the renewed agreement; which would cover five years now instead of three years, would remove the impediments on the rise of Bangladesh exports to India. The one way trade is now hurting Bangladesh all the more and trading circles in Dhaka have always blamed some major obstacles, such as non-tariff and pera-tariff barriers and inadequate banking facility on Indian side of the border for failing to lift the country’s export to Indian market. They believe India must implement practical trade facilitation measures to break the impasse; otherwise it would not help much to ease the tension. It is frustrating that major trade facilitation steps taken in 2011 following Indian Prime Minister Dr Monmohan Sing’s visit to Bangladesh in September and Bangladesh Prime Minister Sheikh Hasina visit to Delhi in January 2010 failed so far to break the impasse. Latest trade figures suggest Bangladesh export to the Indian market yet to show a significant rise in tandem with galloping rise of Indian exports to Bangladesh.Indian exports to Bangladesh meanwhile almost doubled from $3,213 million in 2009-10 to $ 6,034 million in 2013-14. Contrary to it Bangladesh’s export to India rose from $304 million to 456 million as per the commerce ministry figure during the corresponding period with a decline in exports from 2012-13. The most shocking fact is that when Bangladesh exports remained at low and even declining, the Indian governments is not doing enough to end the export stagnancy on Bangladesh side. Bangladesh mainly imports basic commodities from India. Moreover informal imports are also too big while remittance from Bangladesh made by Indian workers covers around $5.0 billion. It is often suggested that Bangladesh is not having enough diversified exports, but nonetheless some of its exports like ceramic, porcelain ware and pharmaceuticals are highly competitive in Indian market, besides the major apparel items enjoying duty free exports. But Indian zero tariff for Bangladesh is not much helpful after the 12.5 percent countervailing duty on garment items. Moreover, garments export has suffered serious setback with the withholding of over $5 million export bills by some Indian importers. Major Bangladeshi exporters have lost confidence in trading with India while concentrating in other markets.Business circles in Bangladesh believe that the visit of Prime Minister Narendra Modi to Dhaka must not only see signing of renewed bilateral trade agreement with some other very significant agreements on coastal maritime and inland water transport and land transit agreements, India must give credible attention to narrowing the trade gap before it is too late. Because a poor trading partner can’t endure the pressure longer to facilitate more trade.
