Bid to improve trade relations: India to allow entry of BD cargo vehicles

block

Kazi Zahidul Hasan :India is going to allow goods laden vehicles from Bangladesh to enter and ply in a gesture to improve bilateral relations as well as facilitating trade between the two neighbouring countries. The initiative was aimed at to reducing freight costs and averting border congestion. This was originally planned as a bilateral agreement, but with no response from Bangladesh for about a year, the Indian commerce department has now proposed a unilateral offer, reported Economic Times on Friday.The commerce department had written to the road transport and highways ministry about the proposal to unilaterally allow Bangladeshi vehicles to ply in India. And the latter has given a conditional consent.Indian road transport andhighways ministry would frame the rules and protocol in this regard. “We have written back saying that we support the proposal but it needs Cabinet nod giving the offer is a unilateral one. There needs to be clarity on whether and when it would translate into a bilateral agreement from which we could also share the benefits. Ministries like home affairs need to be on board for this,” said a highways ministry official.A commerce department official said a final decision will be taken only after the Cabinet clears the proposal.At present, vehicles carrying goods from both India and Bangladesh sides have to unload the goods at border check posts. The cargoes are then transferred to vehicles of the importing country to be taken to their destinations. This unloading and loading has been leading to massive congestion at the border, especially at the land Custom stations or integrated check posts, besides taking a toll on trade transaction and freight costs of exporters and importers, sources said.The combined bilateral trade between Bangladesh and India has crossed $5 billion. If India goes ahead with its move, it will significantly bring down trade costs and speed up goods movement from Bangladesh to India. The highways ministry official quoted earlier said that to facilitate the move, the ministry would need to frame rules under the Indian Motor Vehicles Act, 1988 as well as protocol and procedures particularly regarding acceptable documents.A bilateral Motor Vehicles Agreement (MVA) to enable vehicles from both sides to enter and ply within the other’s territory was mooted years ago. In fact, in 2011, Prime Minister Manmohan Singh and his Bangladeshi counterpart, Sheikh Hasina, had agreed to work towards concluding the agreement. However, officials said, the draft bilateral agreement sent to Bangladesh by the highways ministry has been pending with Bangladesh for about a year.

block